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With the passage of House Bill 1308 (HB 1308) last week, Hawaii came a step closer to allowing sports betting. The bill received unanimous support from the Economic Development and Technology Committee before being adopted by the House Judiciary and Hawaiian Affairs Committee by a 6-4 vote. The bill now moves on to the Committee on Finance, where state agencies are increasingly opposing it.
Only two states in the US still do not allow gambling of any kind, and Hawaii is one of them. The state already has unlawful sports betting, as noted by Rep. Daniel Holt, who proposed HB 1308. He maintained that the local economy would gain from taxing and regulating the sector.
“The reality is that residents are already engaging in illegal sports betting,” Holt said. “It’s time to regulate this industry and bring those dollars into the state’s economy.”
If passed, the bill would authorize at least four sportsbooks and impose a 10% tax on sports betting revenue. Major operators like BetMGM and DraftKings have expressed support, urging lawmakers to create a legal framework for sports wagering.
Despite progress, the bill faces resistance from law enforcement and state officials. The Honolulu Police Department raised concerns about potential increases in problem gambling. Meanwhile, the state attorney general’s office recommended keeping social wagering as Hawaii’s only legal form of gambling.
The Honolulu prosecuting attorney’s office also opposed expanding gambling, arguing that the state should focus on more urgent issues like homelessness, drug use, and alcohol addiction.
A different development was the failure of a plan to open casinos in Honolulu. Senate Bill 893 sought to impose a 15% gaming tax, grant 20-year casino licenses, and create a Hawaii Gaming Control Commission. However, it was rejected due to resistance from the prosecuting attorney in Honolulu as well as the attorney general.
Now that casino legislation has been eliminated, focus is on HB 1308. As Hawaii’s casino expansion debate rages on, the bill’s fate will be decided by the Committee on Finance.