Could Hawaii Finally Legalize Online Sports Betting?

Despite considerable odds, Hawaii has taken its first step towards legalizing online sports betting after House Bill 1308 successfully passed through to the Aloha State legislature.

As a result of its approval in both the House and a key Senate committee last week, the stage is now set for HB 1308’s potential enactment into law. However, the bill’s progression was also met with a loud chorus of disapproval from several high-profile opposition factions.

The bill intends to open the state’s doors to digital sports betting platforms in a bid to ensure Hawaii can regulate the industry while also benefiting from the lucrative tax-generating incentives that mainland states such as Michigan and New Jersey enjoy.

Supporters of the bill argue that by legalizing sports betting it will help to curb the rampant offshore and illegal gambling which is prevalent across the island state as well as offer far greater protections for Hawaii islanders.

A point reinforced by one of the bill’s sponsors, Rep. Dan Holt, who stated, “Sports betting is already happening across our islands — it’s just happening through bookies and unsafe offshore websites that don’t have any consumer protections and allow minors to bet.”

In the hope of facilitating the bill’s progression, even key betting operators DraftKings and BetMGM offered to testify for the cause in an attempt to alleviate the concerns being raised by opposition leaders and native Hawaiians.

If passed, industry insiders insist HB 1308 would bring in an estimated $10 million to $20 million in additional tax revenue each year despite the bill proposing a lower-than-average tax rate of just 10%.

That being said, opposition leaders – which include some government agencies and Native Hawaiian groups – are suspicious that approval will only reinforce the potential negative impacts of legalizing sports betting on the chain of islands.

This concern was highlighted by the Department of the Attorney General, who warned that the bill’s approval could lead to “increased credit card debt, reduced credit, and an increase in bankruptcies in the most vulnerable families.”

In spite of the ongoing controversy and the bill’s high-profile opposition, HB 1308’s recent passage in the House and a Senate committee at least demonstrates there is a growing willingness to explore its regulation.

Given the scope of increased tax revenues and improved consumer protections in its favor, Hawaii could be inching closer to a historic decision to bring legal sports betting to the state.