Hawaii Senate Advances Online Sports Betting and Fantasy Sports Legislation

Hawaii is one step closer to legalizing online sports betting and fantasy sports. The state Senate passed House Bill 1308 with a narrow 15-10 vote, sending it back to the House for final approval after multiple amendments. If the House agrees and Governor Josh Green signs it, Hawaii could soon open the door to its first legal gambling operations. If that happens, Hawaii will follow more than 30 states that moved quickly to legalize sports betting after the 2018 Supreme Court decision that struck down the nationwide ban.

The legislation would allow at least four online sportsbooks to operate under state licenses. It also includes rules for fantasy sports platforms. Hawaii and Utah are the only two states that currently ban all forms of gambling, making this a major policy shift.

During the Senate vote, public tension was high. One person in the gallery shouted, “Shame on all of you. You represent the people, not your self-interest,” after the bill passed. Lawmakers debated heavily over which agency should oversee the industry and how the program would be funded.

Initially, the Department of Commerce and Consumer Affairs was set to handle regulation. However, department head Nadine Ando pushed back, saying her agency lacked the resources to make it work. “Between the low licensing fee, taxation, and infrastructure, I did not believe this was an endeavor that would even cover its own costs,” she said.

The bill now places oversight responsibility on the Department of Law Enforcement, a newly created agency. That move sparked concern. Senator Sharon Moriwaki questioned the timing, noting the department only recently appointed its first director, Mike Lambert. She and other lawmakers doubted the department could build out a full regulatory framework before the proposed launch date of July 1, 2025.

In its current form, the bill restores a 10% tax on sportsbook revenue and sets a $250,000 licensing fee. These financial provisions had been unclear in earlier drafts. However, the Department of Taxation said the bill still needs more detail—especially around how suppliers would be taxed.

Even with those gaps, supporters pointed to the state’s growing budget problems. Senator Angus McKelvey argued that Hawaii must find new ways to raise revenue in the face of federal cutbacks and rising global costs. “We need this revenue because of what we are facing in the state of Hawaii from this unprecedented disaster in Washington, D.C. It’s not just the blatant up-front cuts, it’s the inflation. It’s the tariff wars. Screws, right now, have gone up 70%,” he said.