Longshot Hawaii Sports Betting Bill Falls Just Short in State Legislature

Bettors in the Aloha State are going to need to wait a little longer to bet on sports legally.

A committee between the Hawaii House and Senate was unable to reach an agreement over HB1308, which would have legalized sports betting. While the bill originally passed both chambers, amendments added caused the two sides to end up at odds. 

There was hope that a committee session would help find some middle ground, but the two sides couldn’t reach a compromise. This shows that, while both chambers support legal sports betting, they can’t agree on how it should be run.

The bill’s unceremonious rejection brings an end to an incredible Cinderella story. HB1308 was expected to encounter the same roadblocks as past sports betting bills, with many industry proponents viewing its chances of becoming law as a long shot. Instead, the bill stunned everyone by coming within a step of reaching the Governor’s desk.

The Hawaii legislative session is set to end on May 2, meaning there won’t be time for another sports betting bill to be passed in 2025.

Tax Rate and Licensing Fees Remain Roadblock

While both the Hawaii House and Senate support regulated sports betting, they can’t agree on the finances. There are two significant issues that the two sides still can’t agree upon.

The first disagreement is over the proposed tax rate. While HB1308 was proposed with a tax rate of 10%, House lawmakers removed it to secure the votes needed to pass the bill. The Senate reinstated the proposed 10% rate, which they passed back to the House. Unfortunately, many House makers believe third-party operators should be paying more.

The other disagreement was over licensing fees. Like with the tax rate, the House passed the bill with the licensing fees left blank. The Senate set the cost at the originally proposed $250,000, but many lawmakers believe that is far too low.

Time will tell if the two sides can find some middle ground before the next legislative session begins.