Hawaii Bill Advances but Sports Betting Will be Tough to Pass

A Hawaii Senate bill aimed at legalizing digital sports betting made a cautious step forward on Tuesday, February 4, but its journey through the legislature is far from certain. Senate Bill 1569 (SB 1569), which proposes the legalization of statewide mobile sports betting, was advanced by the Senate Economic Development and Technology Committee, though not without reservations from several lawmakers. The bill is the second gambling proposal to gain traction in Hawaii in just a week, as the House Economic Development and Technology Committee also moved House Bill 1308 (HB 1308) forward on January 31. Both bills share the same objectives but are still facing significant hurdles.

 

The Sports Betting Dilemma

The push to legalize sports betting in Hawaii comes amid growing interest in expanding gambling opportunities within the state. SB 1569 and HB 1308 are part of a larger set of at least eight gambling-related bills being debated by Hawaii’s legislature. Among these is a controversial bill that would limit gambling to designated tourist zones, a measure inspired by policies in several Asian countries but not commonly seen in the United States. Other proposals include legislation to regulate and tax daily fantasy sports.

While SB 1569 advanced in the Senate committee, it did so with some significant caveats. Several lawmakers on the committee expressed their support “with reservations,” signaling that there is not yet a clear consensus on the issue. The reservations reflect ongoing concerns over the potential social impact of legal gambling in Hawaii.

One of the most vocal critics of the bill was Hawaii Deputy Assistant District Attorney David Williams. His office has raised concerns that legal sports betting could exacerbate financial and social harm, particularly among vulnerable residents. In his testimony, Williams warned that studies have shown legal gambling is linked to an increase in bankruptcies and domestic abuse, especially in economically struggling households. These concerns are prompting some to question whether the potential benefits of legalized sports betting outweigh the risks.

On the other side of the debate, several government agencies and trade organizations argued in favor of the bill, highlighting the potential for new revenue streams in a state grappling with a high cost of living. Supporters of SB 1569 estimate that legalizing sports betting could generate up to $37 million in tax revenue for the state, money that could be used to support state programs or offset costs for residents.

However, Senator Donna Mercado Kim raised doubts about the bill’s financial promise. While she acknowledged that tax revenue from sports betting could be beneficial, she emphasized that it would not be a cure-all for the state’s affordability issues. “For me, it’s not necessarily the money, but to stop the illegal wagering, to make it safe so people know that they can do it and not have their fingers cut off if they don’t pay or whatever,” Kim said. She further cautioned against overestimating the financial benefits, suggesting that sports betting alone is unlikely to significantly reduce Hawaii's living costs.

 

Stakeholders Weigh In

Supporters of legal sports betting pointed to successful examples from other states that have legalized mobile sports betting. Rebecca London, Senior Government Affairs Officer at DraftKings, noted that legalizing sports betting could help eliminate the illegal market, citing states that have effectively driven out illicit operators once they established a legal framework for mobile betting.

However, the proposal is not without opposition from some local operators. Boyd Gaming, the operator of Vacations Hawaii, which offers vacation packages to Boyd Gaming properties in Las Vegas, voiced concerns over the potential impact of SB 1569 on their business. The bill would limit the number of sports betting platforms in Hawaii to four, with a hefty application and renewal fee of $250,000 each. This could make it difficult for smaller operators to enter the market.

The bill also includes provisions that would allow consumers to fund their betting accounts with credit cards—a method of payment banned in some states, including Iowa, Massachusetts, and Tennessee. Additionally, SB 1569 outlines the creation of a problem gambling prevention and treatment fund, which would be supported by an unspecified percentage of tax revenue.

 

it’s not necessarily the money, but to stop the illegal wagering, to make it safe so people know that they can do it and not have their fingers cut off if they don’t pay or whatever.

Looking Ahead

With the Hawaii legislative session set to run until May 2, time is running out for SB 1569 and its companion HB 1308 to gain full legislative approval. Both bills must clear a significant hurdle by March 6, the deadline for bills to cross over between the Senate and House chambers. While the bills have moved forward, their passage through the legislature is not guaranteed.

As lawmakers continue to debate the merits and drawbacks of legal sports betting in Hawaii, the path ahead remains uncertain. The growing interest in gambling expansion will likely continue to generate intense discussions, especially as the state weighs the potential for new tax revenue against the risks associated with gambling-related harm. The coming weeks will be crucial in determining whether Hawaii will join the growing number of states embracing sports betting, or whether the bill will stall as concerns over its social impact take center stage.