Hawaii Online Sports Betting Bill Heads to Senate Floor

Online sports betting is taking a step closer to becoming legal.

Hawaii sports betting bill HB 1308 has passed a significant hurdle by clearing the Senate Ways and Means Committee. It passed with an 11-2 vote, a positive sign for its chances on the Senate Floor. 

The committee set a tax rate for the proposed industry at 10%. The rate charged to sports betting operators has been a hot topic in state legislation, leading to the failure of several previous bills. This prompted the House to leave the tax rate blank when it passed HB 1308, but the Senate committee believes that setting it at 10% provides the best chance for passage.

While the committee's strong support is positive, four members who voted in favor did so with some reservations. They think the amendments added are an improvement, but they still have concerns over legalizing the industry. This means their support in a full Senate vote isn’t guaranteed.

While HB 1308 cannot be entered for a full Senate vote, it is not guaranteed to be reviewed before the legislative session ends on May 2.

Resistance to Sports Betting Remains Strong

Lawmakers have been coming around to the idea of online sports betting, but many other groups continue to push back. That includes law enforcement and activist groups, who have pointed out the social and financial toll the industry will take on residents. They argue this will far outweigh any tax revenue generated.

The threat of a spike in problem gambling also continues to be a key talking point for opponents. The continental US is seeing those numbers rise at alarming levels as they search for solutions. Given that Hawaii is around 2,400 miles off the coast, they may not have the same access to tools and programs to help fight the problem.

Some opponents in the state legislature have been swayed by HB 1308 and the amendments added, but we’ll see if that support holds during a Senate floor vote.