Hawaii’s Digital Betting Bill Advances Despite Strong Opposition

Hawaii’s digital sports betting bill, HB 1308, is making its way through the state legislature, despite heavy opposition from government agencies and Native Hawaiian groups. The bill, which would permit four digital sports betting platforms without physical retail locations, has sparked a contentious debate that mirrors gambling expansion efforts seen in other states. However, what makes this situation unique is the broad opposition coming from within the government itself, including the Attorney General, local police, and several key departments such as taxation, finance, and commerce.

The bill, still in the legislative process, has progressed through both the House and Senate, with several committees advancing it despite the concerns raised. Government agencies that would typically oversee and regulate such measures have voiced strong opposition to HB 1308. Among the most vocal critics are the Department of Commerce and Consumer Protection, which was initially named as the bill’s regulator but now opposes it, and the Department of Finance, which expressed concerns about the financial complexities the bill would bring. The Department of Taxation also opposed it, raising issues related to revenue generation and potential tax evasion. At the same time, law enforcement agencies, including local police, have warned of the risks related to gambling addiction and the impact on communities.

Industry Support and Legislative Influence

Despite this resistance from state agencies, the bill has garnered significant support from the sports betting industry, evidenced by contributions to state lawmakers. A review of campaign donation records by iGB revealed that several legislators who have actively supported gambling bills this session have received donations from the Sports Betting Alliance (SBA), a coalition of major digital betting companies such as BetMGM, DraftKings, Fanatics Betting & Gaming, and FanDuel. Notably, the SBA had never made political contributions in Hawaii until late 2024, just before the legislative session began.

The donations were made to key figures, including Senate committee chairs Lynn DeCoite and Jarrett Keohokalole, both of whom voted in favor of advancing HB 1308. DeCoite, chair of the Senate Economic Development and Tourism Committee, sponsored a similar bill in the Senate, although it was ultimately deferred after passing her committee. These legislators have played a crucial role in the bill’s continued movement, even as opposition from various government agencies grows.

The Role of Boyd Gaming and Governor Josh Green

In addition to the industry’s lobbying efforts, Boyd Gaming—a company that operates casinos in Las Vegas—has made notable contributions to Hawaii’s political landscape. Boyd Gaming donated over $5,500 to Governor Josh Green’s campaign in 2024, with the company’s representatives actively testifying against gambling expansion bills in the state. Green’s position on the issue remains unclear; while he supports exploring the possibility of legal sports wagering, he has emphasized the need for safeguards to prevent abuses, including gambling addiction.

Interestingly, Boyd Gaming’s donations coincided with a trip that Green took to Las Vegas in October 2024 to learn about sports tourism, further raising questions about the influence of gaming corporations on local politics. During the trip, Green attended a Las Vegas Raiders game with Boyd Gaming executives, a visit that underscored the connection between sports tourism and the expansion of gambling.

One of the main sticking points for opponents of HB 1308 is the proposed regulatory structure. During the March hearings, Nadine Ando, the director of the Department of Commerce and Consumer Affairs, expressed concern that her department would not be suited to handle the complexity of regulating legal sports betting. As a result, DeCoite amended the bill to shift the regulatory responsibilities to the Department of Economic Development and Tourism. This change further underscores the tensions between government agencies and lawmakers advocating for gambling expansion.

Opposition from local lawmakers, including those with reservations about the bill, reflects broader concerns. Some fear that gambling expansion would lead to an increase in addiction rates, while others worry about the ethical implications of profiting from gambling revenue. Critics have even drawn comparisons between the dangers of gambling addiction and the societal harm caused by drugs like heroin and fentanyl. Others, including members of the legislature, have voiced concerns about local dollars flowing out of Hawaii and into out-of-state operators, further complicating the financial justification for legal sports betting.

As HB 1308 continues to make its way through the legislative process, it faces several hurdles. The bill’s next stop is the Ways and Means Committee, where key figures like DeCoite and Senator Dru Kanuha—who co-sponsored another gambling bill—will play an influential role. While the bill has moved forward in several committees, each vote has been accompanied by reservations, with lawmakers expressing uncertainty about the long-term implications of such an expansion.

One of the most contentious aspects of the bill is the tax rate and application fees, which were revised during committee discussions in February. The original proposal, which included a 10% tax rate and a $250,000 application fee, faced criticism from lawmakers and stakeholders who felt the numbers were too aggressive. However, even without these provisions, the bill’s passage through the legislature remains uncertain, especially given the strong opposition from key state departments and concerns about the bill’s potential impact on local communities.

 

Casino gambling has not always been a favorite subject… Regardless of if we are flying to Vegas or flying to any other place, we’ve always had our challenges here in Hawaii.

Conclusion

Hawaii’s HB 1308, which would legalize digital sports betting in the state, is progressing through the legislature amid a storm of opposition from government agencies, local law enforcement, and Native Hawaiian groups. While the gambling industry has strongly supported the bill, with significant political contributions influencing lawmakers’ actions, the regulatory and societal concerns surrounding the bill are far from resolved. As the debate continues, it remains to be seen whether the state will embrace the growing trend of sports betting or reject it in favor of protecting its residents from the potential harms of gambling expansion.