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Legal Sports Betting Bill Advances In Hawaii Legislature

Hawaii Legislature

Hawaii is one of eleven US states that has yet to pass some form of legal sports betting. This session, that status could change as House Bill 1308 has passed the House and is now being considered by the Senate.

The Hawaii Senate Joint Committee on Economic Development, Tourism, Commerce, and Consumer Protection has passed the bill unanimously.

At the moment, the language does not detail what the tax rate will be for Hawaii sports betting, nor does it declare any licensing fees. The House passed a version without these included to expedite the bill’s progress.

If HB 1308 goes the distance, at least four mobile sportsbooks will be allowed for licensing in HI.

Retail sportsbooks have been left out of the equation for now. While this aspect may seem to limit the local options for placing a wager, mobile expansion is much more lucrative.

Players can bet on sports from anywhere inside the state, whereas brick-and-mortar locations require travel.

Many opponents of the bill testified during the latest committee stop. Among them include the Department of Taxation, the HI Attorney General, and the Department of Commerce and Consumer Affairs.

The opposition cited income issues, domestic abuse, and the reliability of revenue estimates.

Native American groups in HI are also against the bill because it is a contradiction of local values and traditions.

Proponents include some of the domestic operators that would apply for sportsbook licenses, who provided estimates as high as $20 million per year in tax collections from sportsbook revenue based on a suggested 10% rate.

Another plus is the creation of jobs in the sports betting sector. The addition of sportsbooks would require employees for regulatory purposes, customer service roles, and technical positions.

The state is already a tourist hotbed, but the addition of mobile sports betting could increase those numbers.

Hawaii has historically held an anti-gambling stance and doesn’t allow for casinos or sports betting in the state. They are also a territory made up of islands and are not threatened by any bordering states that offer domestic sports betting.

Lawmakers have become more open to sports betting discussions because of the prevalence of illegal bookies in HI. There are also offshore sportsbook sites that accept players in the state and allow them to bet on sports online.

July 1, 2025, would be the activation date for HI sports betting if HB 1308 becomes law. The bill will also legalize Daily Fantasy Sports (DFS) in Hawaii.

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