A bill that would legalize sports betting in Hawaii was voted out of committee last night, though an amendment clarifies it is just to continue the discussion.
On Wednesday, the Economic Development and Technology Committee voted HB 2570 out of committee with an amendment that pushes the effective date out about one millennium to July 1, 3000. That will allow further discussion about the issue, Chairman Greggor Ilagan said, a remark echoed by Rep. Kyle Yamashita.
“Obviously this is a controversial bill moving forward, however I do believe in the process,” Yamashita said. “I currently do have reservations on how this moves forward. I believe it is a foot in the door kind of bill. But I do believe the legislature needs to have discussions on these issues.”
Let ‘aloha’ drive decisions
The Sports Betting Alliance, which lobbies for bet365, BetMGM, DraftKings, Fanatics and FanDuel, commented in support of the legislation, but the rest of Wednesday’s testimony was against sports betting in Hawaii. Those opposing the legislation included the attorney general‘s office, Honolulu Police, the Department of Commerce and Consumer Affairs and the Department of the Prosecuting Attorney of the City and County of Honolulu.
Marcus Oshiro, a former member of the House for 23 years, said it was important that the commissioners “ensure that aloha, not corporate profit, drives our decisions.”
What supporters call a revenue bill is really a wealth extraction bill for the Hawaiian people, Oshiro said. The fact that Hawaii has no legal gaming and therefore no oversight would leave the state vulnerable, he added.
“This may be the mainland’s idea of revenue generation but it should not be Hawaii’s revenue generation,” Oshiro said.
Les Bernal of Stop Predatory Gambling called out SBA members for skirting Hawaiian laws right now by offering sports predictions, suggesting their company values are “the antithesis of what the aloha spirit represents.”
Native Hawaiians also against sports betting
Online sports betting is an “exporter of our dollars,” according to Brandon Maka‘awa‘awa, VP of Nation of Hawaii, which represents native Hawaiians.
“Online sports wagering does not create jobs, provide revenue back into our communities, or have a lasting economic impact in Hawaii,” Maka‘awa‘awa said. “Almost all activity happens on platforms based outside of Hawaii, meaning revenue leaves the islands while the responsibility for impacts remains in our communities.”
He also asked that a working group on gaming be allowed to complete its work before passing any legislation.
“Allowing the working group to complete its work gives Hawaii the opportunity to move forward with clearer understanding and in a way that reflects responsibility to the people and care for the ʻāina,” Maka‘awa‘awa said, using the Native Hawaiian word for land.
Previous sports betting in Hawaii attempts
Rep. Dan Holt‘s legislation to legalize sports betting in Hawaii actually passed both the House and the Senate last year, but the two sides could not find a compromise in a conference committee.
Chairman Ilagan renamed this year’s bill the Representative Daniel Holt Act, though Holt made it clear he did not ask for that.
Holt’s bill even had support from Gov. Josh Green, who said he would sign a sports betting bill as long it included some responsible gambling safeguards. The failed legislation led to the bill that created the work group looking at gambling in Hawaii.
Last year was the first time a sports betting bill passed even one chamber, with other bills typically dying at the committee stage.
