Hawaii Debates Online Sports Betting Legalization
Key Takeaways
Hawaii is working on legalizing online sports betting. Bill HB 1308 proposes a fully digital solution – without any physical betting shops. After disagreements between the Senate and the House of Representatives, the bill is now heading to a conference committee. The main points of debate are tax rates, licensing fees, and the authority of the regulatory body. Time is running out: the legislative session ends on May 2.
What HB 1308 Proposes
Bill HB 1308 would allow sports betting exclusively online. At least four licensed operators would be permitted to operate in Hawaii. No physical betting shops are planned – an unusually restrictive approach compared to other U.S. states.
The goal is to establish a centrally regulated digital betting market. The original draft did not include specific details on tax rates or licensing fees. These details were later added by the Senate.
Disagreement Over Taxes and Fees
The Senate proposed a 10% tax on gross gaming revenue and a licensing fee of USD 250,000. In addition, the Department of Law would act as the regulatory authority. These changes were met with resistance in the House of Representatives.
Representative Sue L. Keohokapu-Lee Loy criticized the proposed licensing fee as too low. In her view, it is not appropriate for an industry generating billions in revenue. She called for a significantly higher fee.
Tax Revenue Potential Remains Controversial
Jeremy Limun, a representative from BetMGM, estimated that Hawaii could generate USD 10 to 20 million annually in tax revenue with a 10% tax rate. Critics question these figures. They point to other states that have reported lower revenues despite higher tax rates.
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There is a trend in the U.S.: many states increase their tax rates after introducing sports betting in order to maximize public revenue. This development could influence Hawaii’s final regulations as well.
What Happens Next
Since the Senate and House of Representatives could not agree on a unified version, the bill is now being further negotiated in a conference committee. This committee must develop a compromise that both chambers can accept.
Time is tight: Hawaii’s legislative session ends on May 2. A final version must be completed and passed by then. Otherwise, the introduction of digital sports betting will be delayed indefinitely.
Our Assessment
With HB 1308, Hawaii is pursuing a clearly digital approach to sports betting – without physical operators. While this reduces infrastructure costs, it also limits market size. The ongoing debate over tax rates and licensing fees shows that the legislative process is far from over.
For you as a player or operator, it remains to be seen whether and how Hawaii will open the market. If the bill is passed, a regulated, purely digital market could emerge – with limited competition and clear rules. The decision of the conference committee will be crucial.
Sources
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