An online sports betting bill has gained surprising traction in Hawaii’s state legislature. If the bill does pass, Governor Josh Green has stated he will not veto it, assuming it has acceptable responsible gambling guardrails in place.
Gov Gives Green Light
Hawaii and Utah are the only states without casinos, online or retail sports betting, daily fantasy sports, or even a state lottery. Therefore, it was unlikely that Representative Daniel Holt’s House Bill 1308, a mobile sports betting bill, would muster enough support to gain passage during this legislative session.
Legislative Progress
However, this has not been the case, as the bill has advanced through several committees and was even approved on the floors of the House and Senate. Nevertheless, amendments to the bill from both chambers have put the House and Senate at loggerheads, leading to the formation of a special committee of representatives and senators to resolve their differences and hopefully forge a compromise solution.
Should the lawmakers achieve a mutually agreeable version of the bill, the measure would then advance to Governor Josh Green’s desk, where he recently voiced support for such a bill.
“As long as there’s some safeguards with gambling addiction services and so on, if the legislature goes to the full way and passes it, I’ll likely let it become law,” Green stated earlier this week.
Licensing Fees and Tax Debate
The bill, as it was initially constituted, called for a $250,000 licensing fee covering a five-year term and a tax rate of 10% on revenues with at least four online sportsbooks operating in the market. However, some legislators believe that both the tax rate and fees are too low.
In an interesting turn of events, the Sports Betting Alliance, which represents four of the major online gaming operators, including BetMGM, DraftKings, Fanatics Betting & Gaming, and FanDuel, agrees that the licensing fee is not sufficient, suggesting a $500,000 fee.
“With this entire sum paid in year one to cover the five-year period, we believe that this sum will cover the regulatory costs,” an attorney representing the SBA testified before the Senate Ways and Means Committee earlier this month.
Critics Speak Out
Although House Bill 1308 has gained majority approval in both the House and Senate, it is not without its critics. Honolulu City Councilmember Tyler Dos Santos-Tam pointed out the violence that has erupted recently in illegal gaming parlors, including a recent shooting in Kalihi.
“These games aren’t just some aunties playing mahjong. They’re not a bunch of uncles playing poker. This is a whole industry. And along with it comes the guns and drugs, just like we saw in the Kalihi bust and in the Halawa bust. These are really huge problems for our communities,” said Dos Santos-Tam.
But many supporters believe that is precisely why mobile sports betting and even casinos should be legal—to drive out the black market and provide safeguards for responsible gambling.
Kalihi-Palama Neighborhood Board Chair Amanda Ybanez commented, “People in Hawaii gamble. Do we need to have safe parameters? You betcha. But our people are doing it already? Yes, they are. People that actually go to these game rooms have that addiction problem. That’s why there’s a market for it. So, we need to also support mental health therapy and addiction therapy for those that are suffering from it.”
