Hawaii State Lawmaker Sponsors Mobile Gaming Bill 

Hawaii is a vacation paradise that has plenty to offer, but if one state legislator has her way, it will also boast a robust mobile gaming industry despite the fact it is one of the states in which no gambling currently exists.

Rolling the Dice

The New Year has ushered in a bevy of gambling bills throughout the United States, and Hawaii is no exception. Senator Kim Decoite has introduced SB 1572, which would establish the Hawaii State Sports Wagering Commission under the auspices of the Department of Business, Economic Development, and Tourism.

According to the language in the bill, it would promulgate “a legal, safe, and regulated framework for sports wagering.” Another aspect of the bill would be to “combat illegal gambling activities, protect consumers, promote responsible gambling practices and mitigate associated risks, and generate additional revenue for the State to allocate to public initiatives, including education, housing, and infrastructure.”

Decoite’s bill has much in common with another gaming bill, SB 1569, of which she is also a co-sponsor, including vetting sports betting platforms that operate in at least three US markets and would be allowed to offer traditional professional and college sports wagering as well as props and exchange wagering. An initial fee of $250,000 would be assessed for a five-year license.

However, Decoite’s bill does veer slightly from others in that its 15% tax rate on adjusted gross revenues is higher, and it would not include any provisions for daily fantasy sports. It would be a minor miracle should any of the sports betting bills gain serious traction in a market that doesn’t even have a state lottery, but fostering legislative discussion is an opportunity to educate fellow lawmakers for what could be a precursor to many more attempts in legislative sessions to come.

Digital Casinos

As remote a possibility as it is that sports betting will be passed in the Aloha State, the chances of iGaming clearing all the necessary legislative hurdles are considerably smaller. Thirty-nine states have passed sports betting legislation, whether it be mobile, retail, or, in most instances, a combination of both.

However, online casino gambling, also known as iGaming, has not been nearly as embraced despite the revenues doubling and even tripling that of mobile sports betting due to a considerably higher hold (win percentage). Only seven states currently offer iGaming, including New Jersey, Delaware, West Virginia, Pennsylvania, Michigan, Connecticut and Rhode Island.

Anti-gambling advocates contend that allowing people access to a 24-hour casino in the palm of their hand will increase gambling addiction, which is one major issue for lawmakers. The other is the threat of cannibalization to land-based casinos that could not only thin their revenues but jeopardize thousands of jobs, which immediately rankles the unions.

In Hawaii’s case, the latter would be no cause for concern because there are no casinos, but the gambling blackout is the biggest bone of contention. Nevertheless, that hasn’t stopped Senator Ron Kouchi from sponsoring SB 1507, which would create the Hawaii Lottery and Gaming Corporation that would be tasked with contracting an online gaming provider to offer games of chance and skill, including lottery, poker, casino slots and table games.