In Hawaii, an online sports betting bill (House Bill 1308) has successfully advanced past its initial review in the Senate, despite significant opposition from governmental bodies and native Hawaiian groups.
The Senate Joint Committee on Economic Development, Tourism, Commerce, and Consumer Protection unanimously approved HB 1308, although four out of nine members expressed reservations.
The bill, previously approved by Hawaii’s House of Representatives, now moves forward in the legislative process. Notably, the current draft lacks defined tax rates or licensing fees, which were intentionally removed by a House committee to ensure the bill’s continued legislative progression.
If enacted, HB 1308 would authorize four digital-only sports betting platforms to operate in Hawaii, explicitly excluding physical betting locations and thus limiting sports betting exclusively to online activity.
Supporters highlight potential economic benefits from a regulated sports betting market, including state revenue. BetMGM and DraftKings provided supportive testimony, with BetMGM projecting potential annual tax revenue of $10m-$20m assuming a 10% tax rate. However, critics emphasize significant social and economic risks, such as increased gambling addiction, financial instability, rising debts, lower credit scores, bankruptcy, and negative impacts on vulnerable families.
Key opposition came from Hawaii’s Attorney General, the Department of Commerce and Consumer Affairs, and the Department of Taxation, all citing serious concerns about social repercussions. The Attorney General referenced studies linking legalized gambling to domestic abuse and negative youth impacts.
Brandon Maka’awa’awa, representing the Independent & Sovereign Nation State of Hawaii, criticized the timing of the legislation, noting that a critical study on the potential impacts of legalized betting in Hawaii remains incomplete. He further questioned the reliability of revenue forecasts provided by proponents.
While the bill continues to face intense scrutiny, its advancement suggests that Hawaii’s legislators are seriously considering the legalization and regulation of online sports betting.
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