Hawaii Sports Betting Legislation Clears House, Heads to Senate

Hawaii is one of only two states in the US that hasn’t legalized any form of gambling. If this bill is passed in the Senate, online sports betting in Hawaii will finally be legal, and the state will start issuing licenses to various sportsbook operators. So, what are the odds that it will be passed?

A closer look at the House Bill 1308

House Bill 1308 proposes to make online sports betting legal in Hawaii, which would see up to 4 online sportsbooks being authorized to start operating in the state. The bill was filed by Rep. Dan Holt (D-Honolulu) with the help of Representatives Chris Todd (D-Hilo) and Darius Kila (D-Honokai Hale). Recently, it has passed in the state’s House of Representatives with 35 Representatives voting to pass it and 15 voting against it.

Now that it has been moved to the Senate, there are mixed opinions as to whether the bill will also be approved there. Let’s take a look at both sides of the coin.

Why the Senate may not pass this bill

HB 1308 may stall at the Senate because another bill, SB 1569, was deferred in the Senate. SB 1569 also proposed the legalization of sports betting in Hawaii, albeit under different regulations compared to HB 1308. Still, some are worried that the fate of the failed Senate Bill is an indication of how the Hawaii State Senate will approach HB 1308.

Also, various state departments have provided testimonies opposing the legalization of sports betting in Hawaii

The Department of Business, Economic Development and Tourism, the Department of the Prosecuting Attorney, and the Department of Business, Economic Development and Tourism all wrote testimonies not supporting the move to make sports betting legal in Hawaii.

Attorney General Oihana I Ka Loio Kuhina’s testimony reads: “There is no citizens grassroots movement for online gambling in Hawaii or in any other state. The lobbying effort in Hawaii is being driven by the greed of powerful, out-of-state financial interests who stand to reap hundreds of millions of dollars in profits at the expense of your constituents.”

These testimonies, coupled with the failed attempt to pass SB 1569, may indicate that the odds are against House Bill 1308. Still, the two bills are not identical, and many hope that the different parameters of the House bill – combined with the fact that it was already approved by a Hawaiian legislative body – will give it more favor in the Senate.

The Senate may turn down this bill to prevent a potential rise in gambling addiction. Some lawmakers fear that the bill will enable easy access to sports online betting apps, which will fuel gambling addiction in Hawaii residents.

Why the Senate may pass this bill

There are factors that may convince the Senate to pass House Bill 1308. With one of them being that HB 1308 is set to promote better consumer protection.

According to Rep. Dan Holt, passing this bill would enforce better consumer protection and put more restrictive measures against illegal off-shore sports betting sites that Hawaiians are already betting on.

Rep. Holt stated: “Sports betting is already happening across our islands — it’s just happening through bookies and unsafe offshore websites that don’t have any consumer protections and allow minors to bet.”

So, this may convince the Senate to pass the bill to legalize sports betting.

There’s also a potential tax revenue from online sports betting. In recent years, many states that have legalized sports have seen a big surge in tax revenue from the industry. Hawaii is also set to receive a huge tax revenue increase from sports betting, which is one of the main selling points that proponents cite in support of this bill.

Will the Senate pass House Bill 1308?

We cannot say for sure whether or not the Senate will pass the bill to finally legalize online sports betting in Hawaii. There are strong factors that may cause these lawmakers to shut down this bill. On the other hand, the fact that the bill was already passed in the Hawaii House of Representatives gives hope that the Senate will follow suit.