In a dramatic reversal of fortune, Hawaii is knocking on the door of legalizing online sports betting.
The Hawaii State Senate on Tuesday evening passed House Bill 1308 with several small amendments, 15-10. The bill will now return to the state's House for a vote on concurrence.
HB 1308 originally passed the House in a 35-15 vote.
Gov. Josh Green has suggested that he would sign legislation supporting legal sports betting so long as it is equipped with regulatory safeguards.
A shift in stance
As noted recently by Legal Sports Report, Hawaii is one of just two states that does not authorize gambling in any form — whether that be sports betting, casino gaming, the lottery or any other type of wagering.
Previous attempts to legalize sports betting in Hawaii ended swiftly and with little support, which makes the sudden progress highly unexpected.
Rep. Daniel Holt (D-District 28) penned the original legislation. His plan called for a 10 percent tax rate and $250,000 upfront license fees for up to four sportsbooks at any given time.
House Finance Committee chairman Rep. Kyle Yamashita (D-District 12) removed the tax rate and license fee from the details before votes were cast, citing a goal of encouraging conversation and participation by other lawmakers. The bill advanced with a 12-3 majority vote, although six committee members voted “with reservations.”
The Senate’s amendments to the bill restored the original tax and fee, meaning that the House will vote on the same bill it originally changed.
Hawaii's Senate has historically been more averse to progressing gaming legislation, which means the House members may need to acquiesce to the amended bill to finally push legalization through.
Will Hawaii legalize sports betting?
While gambling is illegal in Hawaii, many lawmakers spent recent weeks arguing that black market gaming is proliferating and only taking away a taxable revenue source from the state coffers.
“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,” Holt said in a statement after the House approved the initial bill without the tax rate or license fee. “With this legislation, we can join the 38 other states (and Washington D.C.) that have created regulated, consumer-protected sports betting markets and create millions in revenue for our state.”
Sen. Donna Mercado Kim (D-District 14) voiced similar sentiments.
“I play games on my phone, and it always pops up that I can play bingo and win money, or I can play solitaire and win money,” she said. “It’s already there. I’m sure a lot of people are doing it already — it’s so easy.”
Despite the swelling support for legalized wagering, there is still opposition in the Aloha State. Several community groups and local organizations shared their concerns about the problems that would be created by a legal sports betting market.
If approved, the bill would implement a deadline of Dec. 31, 2025, for sportsbooks to launch in an online-only capacity.