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Committee approval has been given to both a Senate and a House bill to legalize online sports betting and daily fantasy sports.
HB 1308 was passed through the House Committee on Economic and Development and Technology by six votes to nil. One member did not vote.
SB 1569 breezed unanimously through the Senate Economic Development and Tourism Committee, with five votes to nil.
Key Details of Hawaii’s Sports Betting and Fantasy Sports Bills
The bills would permit betting on professional, collegiate, amateur, and Olympic sports but forbid wagering on youth competition, which is classified as competition for under-18-year-olds.
The Hawaii Department of Business, Economic Development, and Tourism would be responsible for rulemaking and oversight. Online sports betting and daily fantasy sports would be regulated separately, should they be legalized in the Aloha state.
Under proposed rules, sports wagering operators would be required to pay a $250,000 license fee, and suppliers providing sports-betting adjacent services would pay a $10,000 license fee. Licenses would be valid for five years.
The types of wagers permitted include single-game bets, parlays, money line bets, in-game wagering, and proposition bets.
Hawaii’s proposed tax rate on sports betting revenues is 10%. The revenue will contribute to the gambling prevention and treatment fund.
From a player protection perspective, operators who receive a potential Hawaii online sports wagering license will be responsible for monitoring suspicious betting activity.
Furthermore, the bill would establish a voluntary self-exclusion program for problem gamblers. It would also mandate responsible gambling messaging, such as toll-free helplines in advertisements.
Should operators violate regulations and engage in illegal operations, fines ranging from $10,000 to $100,000, depending on the number of violations, are possible. Repeat offenders could face up to five years imprisonment.
Rep. Chris Todd, the co-sponsor of HB 1308, told the Committee that people “are generally speaking very good at understanding what potential negative outcomes may arise from legalization but very bad at recognizing the current negative outcomes of prohibition.”
What’s Next for Sports Betting in Hawaii?
Several other pieces of legislation are currently at a standstill in Hawaii. There are separate Senate bills that would legalize retail and online sports betting but not fantasy sports, as well as a bill that seeks to establish the Hawaii Lottery and Gaming Corporation to offer online casino games and poker but not sports betting.
If passed, sports betting and fantasy sports could be operational in Hawaii by July 1, 2025. However, the regulatory process still needs to be completed, and it would mark a significant move away from the state’s traditional stance on gambling legalization.
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