Hawaii House Passes Digital Sports Betting Bill

Hawaii’s House of Representatives has sent a digital sports betting bill to the Senate, despite a mix of support and opposition from lawmakers. The bill, known as HB 1308, passed on March 4, beating the state’s critical March 6 crossover deadline. However, the vote was not without controversy, as several legislators voiced strong reservations about the potential impact of legal sports betting on local communities and the integrity of sports.

The bill, which allows for digital platforms for sports wagering but prohibits physical sportsbooks, passed the House with 16 votes against it. Lawmakers who voted in favor of the bill “with reservations” expressed concerns about the negative effects of gambling, while opponents compared the impact of sports betting to harmful substances like heroin and fentanyl. Some went as far as to label any revenue generated from the legalization of sports betting as “dirty” money.

 

Opposition Concerns

Opponents of HB 1308 were particularly vocal about the potential for local dollars to be funneled out of state. There is a prevailing concern that Hawaii’s residents would be sending their money to out-of-state operators, potentially undermining local economies. Another major issue raised was the risk of gambling addiction. Some critics argued that legalizing sports betting would contribute to a surge in addiction cases, placing an additional burden on social services and public health resources.

Perhaps the most striking objection was the impact on the integrity of sports. Legislators who opposed the bill warned that allowing gambling on sporting events would tarnish the purity of the games. In this view, sports should remain free from the corrupting influence of financial speculation, and betting could erode the true spirit of competition.

While HB 1308 is the first sports betting bill to pass out of the House, it’s not the first time this issue has come to the forefront in Hawaii’s legislature. Sponsor Representative Daniel Holt has been advocating for legal sports betting in Hawaii for several sessions, but his previous efforts have failed to make significant headway. This year, however, there seems to be renewed momentum, as his bill now progresses to the Senate for consideration.

Holt is optimistic about the bill’s chances in the Senate, explaining that he believes this iteration of the proposal “finally got it right.” Notably, the bill calls for four digital platforms for sports betting but no physical sportsbooks, aiming to balance accessibility with concerns over the proliferation of gambling establishments.

 

Taxation and Licensing

A key issue during the House vote was the proposed 10% tax rate and the $250,000 application fee for betting platforms, which had originally been included in the bill. These provisions were removed by the House Finance Committee after concerns that they could be barriers to the bill's success. Committee chair Representative Kyle Yamashita proposed eliminating these measures to ensure the bill’s passage and continued discussion. However, the Senate could reinstate these provisions or leave the decision to a future regulator.

In committee, Representative Sue L. Keohokapu-Lee Loy raised concerns about the low licensing fees, arguing that the $250,000 fee was disproportionately low for an industry that generates billions of dollars annually. “I would love to see that licence fee go up exponentially,” she said, reflecting a common sentiment that more robust regulatory and financial requirements should be in place to match the scale of the industry.

Hawaii is one of the remaining states that has not legalized sports betting following the overturn of the Professional and Amateur Sports Protection Act (PASPA) in 2018, which opened the door for states to legalize the practice. As of now, 39 states have legalized sports betting in some form, but Hawaii is one of just 11 states that has yet to pass such legislation. It is also one of at least eight states with sports betting bills currently under consideration for the 2025 legislative session.

The political landscape around sports betting remains fluid, with states like Mississippi and Minnesota seeing their own efforts stall this session. In contrast, Georgia is the only other state with active progress on sports betting, as lawmakers there race against the clock to pass a bill before their own crossover deadline. As Representative Sue L. Keohokapu-Lee Loy said:

 

I would love to see that license fee go up exponentially.

What’s Next for Hawaii?

As HB 1308 now moves to the Senate, it faces a critical two-month window before the legislature’s session concludes on May 2. While it’s unclear how the Senate will respond to the bill, especially given the recent deferral of its companion bill, SB 1569, by the Senate Consumer Protection/Ways and Means Committee, advocates are hopeful. If passed, the bill could significantly reshape Hawaii’s gaming landscape, with digital platforms potentially allowing residents to wager on sports legally for the first time.

The debate over sports betting in Hawaii is far from over, and the outcome will depend on how the Senate addresses concerns raised in the House and whether any compromises can be made. With neighboring states increasingly embracing sports betting, Hawaii’s decision could be pivotal in shaping its own future economic and social landscape.