Hawaii became the surprise of the legislative season as a sports betting bill advanced past the House on Tuesday.
Lawmakers passed House Bill 1308 on Tuesday by a 35-15 vote. It’s the farthest a Hawaii sports betting bill has made it in the Aloha State.
“This is great news for Hawaii,” Rep. Daniel Holt, the bill’s sponsor, said in a statement. “Sports betting is already happening across our islands — it’s just happening through bookies and unsafe offshore websites that don’t have any consumer protections and allow minors to bet. With this legislation, we can join the 38 other states that have created regulated, consumer-protected sports betting markets and create millions in revenue for our state.”
While the sports betting legislation moves on to the Senate, it still has an uphill battle before the session concludes on May 2. The Senate has already moved against several gambling bills.
Hawaii sports betting details
Hawaii is one of two states without any form of legal commercial gambling.
Holt’s legislation would legalize up to four sportsbooks in Hawaii. The Department of Commerce and Consumer Affairs would regulate the industry.
During the journey through House committees, lawmakers amended the bill to include unspecified fees and tax rates to encourage further discussion.
Problem gambling sticking point
Throughout previous efforts to legalize sportsbooks, lawmakers often cited potential growth in problem gambling. Those concerns continued in this year’s committee meetings and House vote.
One lawmaker, Rep. Andrew Garrett, detailed a story of a friend who fell into financial ruin because of a gambling addiction.
During the bill’s legislative journey, several organizations opposed the measure, including the attorney of the city and county of Honolulu, the Honolulu Police Department Department and multiple responsible gambling organizations.
Proponents speak up
More than 1,300 Hawaiian constituents reached out to legislators to support the initiative.
BetMGM, DraftKings and the Sports Betting Alliance all were regulars during committee hearings. Much of the proponent arguments center around the reality of gambling already occurring on the island despite its illegality.
They believe the state could generate up to $20 million in annual tax revenue. The original legislation carried a 10% tax rate.
Nadine Ando, the director of the Department of Commerce and Consumer Affairs, told a committee about the monumental push to regulate the industry and its potential to add jobs to the islands.
Progress for Hawaii sports betting
The legislation’s passage in the House is a significant step; however, developments in the Senate mean it is unlikely to pass the finish line this year. Earlier this session, the Senate shelved both a plan for a casino in Honolulu and the sports betting companion bill.
Still, this week, the Senate approved a working group to study how gambling can add jobs, investment and tax revenue to the Aloha State. The Department of Business, Economic Development and Tourism would house the group.
The group would submit a report to the legislature before the 2026 session.
