Hawaii’s leap towards legal sports betting

Lea Hogg March 22, 2024

Share it :

Hawaii’s leap towards legal sports betting

The Hawaii House Committee on Economic Development has advanced House Bill 2765 forward, marking a significant shift in the state’s stance on sports betting. This advancement is particularly noteworthy as Hawaii, alongside Utah, remains one of the last bastions against legalized gambling. The bill’s progression is a rare occurrence, considering similar legislation has seldom reached a committee vote since 2019.

House Bill 2765, championed by Rep. Daniel Holt, (in photo above), now faces scrutiny from the Consumer Protection & Commerce, Judiciary & Hawaiian Affairs, and Finance committees. The bill must navigate these legislative hurdles to secure a place in the Senate’s deliberations.

The bill’s advocates, including Holt, argue that legal sports betting could invigorate Hawaii’s tourism—a sector that has seen little growth. By welcoming US sports betting operators active in at least three other jurisdictions, the bill aims to diversify the state’s economic portfolio. Notably, the bill currently lacks specifics regarding license fees or tax rates, leaving industry regulation to the Department of Business, Economic Development, and Tourism.

Controversy and opposition

Despite the potential economic benefits, the bill faces staunch opposition. Critics fear the societal impact of legalized gambling, prompting the committee to amend the bill to establish a fund for law enforcement to combat illegal gambling activities.

The Sports Betting Alliance, representing industry giants like DraftKings and FanDuel, has voiced strong support for the bill. They estimate that legal sports betting could generate up to $9 million in annual tax revenue for Hawaii, replacing illicit platforms with a regulated, competitive market.

Hawaii’s history with gambling legislation is fraught with failed attempts and deferred bills. The current legislative climate remains challenging, with a Democratic-majority legislature that has historically opposed gambling, citing concerns over its predatory nature and detrimental social consequences.

As the debate continues, the future of sports betting in Hawaii hangs in the balance, with the potential for significant economic impact and the need for careful consideration of the social implications.