Hawaiian sports fans might be able to bet on hometown hero Max Holloway the next time he steps into the Octagon. This came after the state’s House Finance Committee approved a bill legalizing Hawaii sports betting in the Aloha State.Haiwaii Online Sports Betting Bill Progresses to House Floor
If approved, House Bill 1308 would regulate sports wagering operators should they obtain the necessary licensing requirements from the Department of Commerce and Consumer Affairs. HB 1308 advanced to the House Floor following a 12-3 vote from its committee members, with six members classifying their votes as “with reservations.”Haiwaii Online Sports Betting Bill Progresses to House Floor
At its core, House Bill 1308 proposes the legalization of sports betting in Hawaii. The bill establishes licensing requirements for sports betting operators and their suppliers to legally operate in the Aloha State.Haiwaii Online Sports Betting Bill Progresses to House Floor
Moreover, it also defines that sports betting and fantasy sports contests should not be considered as gambling so long as they are legal and meet the requirements imposed by the Department of Commerce and Consumer Affairs.
The proposal initially included a 10% tax on sports betting revenue, but the tariffs were removed to keep the discussion on the topic going.
Present during the committee meeting were representatives from Sports Betting Alliance such as BetMGM, FanDuel, Fanatics, and DraftKings, which highlighted the importance of having a regulated industry.
Should HB 1308 be approved, it will automatically legalize at least four Hawaiian casinos that offer markets on popular sports such as basketball, soccer, football, and tennis.
Industry experts believe that HB 1308 will meet tough opposition once it heads to the House Floor. It hasn’t been long since its companion, Senate Bill 1569, met stern opposition after it was turned down by the Senate Commerce and Consumer Protection Committee.
Several Hawaiian organizations, such as the Honolulu Police Department and the Hawaii Department of Attorney General, have expressed their concerns and stood firm on opposing the legalization of sports betting,
Opponents mentioned the potential growth for problem gambling and its negative impact on the entire Hawaiian community as the primary drivers for opposing gambling.
Should Hawaii move forward with legalizing digital sports betting, the initial licensing fee is set at $250,000. However, several representatives, particularly Sue L. Keohokapu-Lee Loy believes that the $250,000 entry and licensing fee is too low. Especially in the context of an industry that makes billions of dollars every year.
“I would love to see that license fee go up exponentially,” Keohokapu-Lee Loy shared in the committee meeting.
House Finance Committee chairman Kyle Yamashita added that HB 1308 is worth exploring more and that the committee is treating it as a work in progress, potentially talking about the tax rates and entry fees in their next session.
Even many who are in favor of HB 1308 are willing to accommodate alterations to the values and details of the bill. Getting these numbers right, many believe, will have a huge impact on how much economic benefit sports betting will be able to bring to the state.
Both HB 1308 and SB 1569 represent significant steps toward legalizing online sports betting in Hawaii. Should either of these bills pass, it won’t be long before ads announcing sportsbook bonuses start appearing everywhere in the Aloha State.
Both bills agree on many of the main points. They both have provisions meant to help generate tax revenue and protect consumers in Hawaii. They both also propose a regulatory framework to make sure sports betting will need to follow certain rules and to ensure that every sportsbook operating in Hawaii will require a state-provided license.
The two bills, however, do have some key differences. One of the biggest is how they address fantasy sports. While HB 1308 explicitly mentions and discusses fantasy sports in its provisions, SB 1569 does not mention fantasy sports at all.
This is a notable omission, as the daily fantasy sports market in the US was valued at $3.4 billion in 2022. The entire US sportsbook market, meanwhile, was valued at approximately $13.8 billion in 2023.
Due to the aforementioned opposition, it seems SB 1569 is likely shelved for 2025, but HB 1308 is still on the table. The Hawaii Legislative session runs until May 2nd, giving lawmakers plenty of time to make HB 1308 ready for the next committee meeting.
The success of HB 1308 would give sports fans the opportunity to back Max Holloway before he ends his career in the Octagon. With the legislative session running until May 2nd, there is ample time for lawmakers to discuss and revise the law to ensure responsible gaming in Hawaii.
