On Tuesday, the Hawaii sports betting bill passed the lower chamber of the State Legislature.
House Bill 1308 was passed with a 35-15 vote, marking the first instance of gaming legislation advancing through a chamber of the Hawaii Legislature in many years. Hawaii’s House of Representatives has advanced the proposal that would permit as many as four online sportsbooks.
Bill sponsor Rep. Dan Holt (D-Honolulu), who introduced the legislation with Reps. Darius Kila (D-Honokai Hale) and Chris Todd (D-Hilo), argued that Hawaii's prohibition on sports betting is ineffective, as numerous individuals are wagering online via illegal offshore gambling sites. Numerous people rely on bookmakers.
"[Sports betting’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.”
Fiscal forecasts suggest that the state might gain up to $20 million annually by permitting online sports wagering.
Hawaii continues to be one of the most limited states regarding gaming. There are no tribal or commercial casinos, lottery games, parimutuel betting, sports wagers, fantasy sports, or charitable gaming on the islands. Utah is the only state with similar restrictions.
House legislators who opposed HB1308 raised worries regarding gambling addictions that might result in financial issues, shattered marriages, and additional social costs.
“There are a lot of bad things that follow [gaming authorization],” opined Rep. David Alcos (R-Ewa). “From sex trafficking to stealing to all kinds of bad things. Do you want to see Hawaii be like Las Vegas?”
Rep. Andrew Garrett (D-Manoa) mentioned that a friend of his with a serious gambling addiction went bankrupt.
“I wouldn’t wish that pain on anyone,” Garrett said.
Rep. Kim Coco Iwamoto (D-Honolulu), Hawaii’s first transgender legislator, opposed the online sports betting legislation due to its primary advantage for the operators. She argued that illicit, underground betting operations could potentially be more advantageous.
"Local game rooms and chicken fights, which I do not support, contribute to a circular economy because that money is staying within the community,” Iwamoto said.
Nadine Ando, the director of the Department of Commerce and Consumer Affairs, expressed her disapproval of the bill due to its inadequacy in providing sufficient funding for her agency to effectively oversee online sportsbooks.
With HB1308 gaining sufficient backing in the House, it is now the Senate's responsibility to determine if a sports gambling bill advances to Gov. Josh Green's (D) desk. Regrettably for supporters of legal sports betting, Senate Bill 1569, the counterpart bill in the upper chamber, has come to a halt.
SB1569 passed through the Senate Economic Development and Technology Committee in February. The gaming bill has been postponed by both the Commerce and Consumer Protection and the Ways and Means committees.
“Deferring a bill may allow the committee more time to consider it, gain consensus, or prepare an amended draft for the future vote by the committee. If a bill is deferred, the committee must bring the bill back for public decision-making to pass it. If not, the bill simply stays in that committee,” the Hawaii Legislative Reference Bureau explained.
The 2025 legislative session in Hawaii will continue until May 2.
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