Hawaii Sports Betting Bill Heading to Committee After Failing House Vote

The Aloha State’s longshot turn to legalizing sports betting has hit a huddle in its final stretch.

The Hawaiii House of Representatives was unable to approve Senate amendments to sports betting bill HB1308. The bill was initially passed by the house to legalize sports betting, but some of the changes made by the Senate have caused some supporters to turn against it.

As a result, the bill will now head to a conference between members of the House and Senate. Members must update the bill to help it gain approval from both legislative bodies. The lawmakers will have until May 3, the final day os the state’s legislative session.

There is no clear indication regarding which Senate changes caused HB1308 to stall in the House, but the most likely reasons involve the licensing fee and operator tax rate. These numbers were left blank when the House initially passed the bill, but the Seante Ways & Means Committee set numbers before passing the bill along for a floor vote.

The House originally left those numbers blank due to the debate among lawmakers. This had held up previous bills, and the House hoped this would help at least move the state closer to legalizing the industry. 

Some Lawmakers Looking for Bigger Cut of Industry

Many lawmakers have focused on the operator tax rate due to its connection to problem gambling. Fears over the impact on the state’s population have been the biggest roadblock to legalizing sports betting, leading some legislatures to demand operators pay more to help compensate.

The Senate’s proposal of a 10% operator tax rate would be one of the lowest in the country. With many other states struggling to raise their tax rates after legalizing the industry, some lawmakers fear that setting it too low could be a consequence they will have to live with for a long time.

With the industry bringing in eye-popping numbers, many believe the states should see far more in tax revenue.