Hawaii Sports Betting Bill Moves Through House Committee

• A sports betting bill (and casino gaming bill) have been approved by the House Economic Development Committee 
• The sports betting bill was amended to allow the legal age to be 18 in the state
• An amendment was approved to earmark funding to fight illegal game rooms and online gambling

A Hawaii sports betting bill, and a casino gaming bill, are on the move in the Aloha State.

The Hawaii House Economic Development Committee recommended that a bill to legalize online sports betting and a separate bill to legalize one casino license for the state be approved.

The committee approved both measures by a 5-2 vote.

Sports Betting Bill Amended

Rep. Daniel Holt (D-28) introduced HB 2765 to legalize online sports betting and HB 2762 to legalize one casino license in the state. The House Economic Development Committee heard testimony regarding both bills last week.

Prior to recommending the bills be approved, the house committee agreed on several amendments to HB 2765. The members agreed to amend the bill to allow those who are 18 and older in the state to engage in sports betting and change what the sports betting tax revenue will fund.

Holt noted that sports betting tax revenues will now be diverted to a special fund for the Hawaii Department of Law Enforcement to combat illegal game rooms and online gambling. Additionally, funding will be used to create a gambling mitigation program, which does not currently exist in Hawaii.

HB 2765, if approved, will legalize online sports betting in the Aloha State through a series of three-year licenses. The price tag for a license, as well as the cost to do business through a sports betting tax rate, have yet to be announced.

According to the legislation, sports betting would be regulated by the Hawaii Department of Business, Economic Development, and Tourism. Sports betting operators would be eligible to apply for a Hawaii sports betting license as long as they’re already licensed in three other jurisdictions.

Rep. Elijah Pierick (R-39) voted against both measures. He noted that legalizing sports betting and earmarking  its tax revenue to combat illegal gaming is like legalizing prostitution in the state through one regulated brothel and then using the tax revenue to shut down all other illegal brothels.

“It doesn’t seem logically linear. I’m voting no against this bill, believing that gambling is wrong and the tax revenue from this isn’t going to justify its legalization,” he said.

Despite no tax rate being mentioned in the bill, the Sports Betting Alliance, which represents DraftKings, Fanatics Sportsbook, FanDuel, and BetMGM, estimated in submitted written testimony that the state could see an additional $9 million in tax revenue through legalized sports betting.

One Casino Under Gaming Bill

In addition to legalized online sports betting, HB 2762 will also provide the opportunity for one casino in the state.

If approved, one casino license for a term of 40-years will be available. A casino will be eligible to be constructed on the island of Oahu in the state.

The legislation would create the Hawaii Gaming Commission to regulate and oversee casino gaming in t