Sports Betting Proposal Picks up Speed in Hawaii

A new proposal, permitting the regulation of sports wagering in Hawaii is gaining traction. While sports betting is legal in the state, there are currently no authorized online platforms or retail outlets permitted to accept wagers. That is all going to change under House Bill 1308 (HB 1308).

Department of Commerce and Consumer Affairs to Regulate Betting Under a New Bill

The aforementioned proposal was introduced in the House near the end of January this year. After going through several amendments and readings, HB 1308 was up for a final vote in the House ahead of its departure to the senate.

Earlier this week, in a 35-15 vote, the sports betting proposal made a historic step forward and was sent by lawmakers to the Senate. The latest progress HB 1308 has made is significant, considering that it is the furthest such a proposal has reached in the state legislature for the last 10 years.

If approved and signed into law, the bill would enable Hawaii to join a growing list of nearly 40 states that offer legal sports betting. Per the proposal, the Department of Commerce and Consumer Affairs would be tasked with regulating sports betting. In addition, the proposal would empower the aforementioned department to establish “licensing requirements for sports wagering operators and sports wagering suppliers.”

But it’s not only the House that seeks to expand gambling options in Hawaii. A bill was recently reviewed by the Senate which proposes the development of casinos in O’ahu. After successfully clearing the House, HB 1308 was referred to the Senate’s Ways and Means Committee. There, the bill may undergo further changes and will seek approval.

Supporters Argue Betting Is Already Happening, Gambling Opponents Remain Concerned

Legalizing retail and online sports betting will grant Hawaii residents access to licensed betting activities. This, in turn will generate tax revenue and as with most states, Hawaii would set aside a percentage of that revenue for the treatment of gambling harm.

Some supporters of HB 1308 argue that betting is already happening, and the legalization would help fight the black market and offshore operators. Rep. Dan Holt, who was recently interviewed by the Honolulu Civil Beat, said that while sports betting isn’t legal, thousands of Hawaii residents are already participating in the activity via illegal and offshore platforms.

Many states that have legalized sports betting recorded upticks in the number of calls to gambling support lines. Gambling addiction is precisely one of the fears of gambling opponents in Hawaii.

While estimates by betting companies suggest that the state may benefit between $10 million and $20 million in extra tax revenue, some lawmakers are skeptical. Rep. David Alcos asked if that money is really needed for fixing roads. He added: “Maybe taking care of families is a better choice.”