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Legislation to legalize online sports betting and daily fantasy sports in Hawaii has taken a significant step forward, with both a House and a Senate bill clearing committee approval.
House Bill 1308 successfully passed through the House Committee on Economic and Development and Technology with a vote of six to zero, while one member abstained from voting. Meanwhile, Senate Bill 1569 advanced unanimously through the Senate Economic Development and Tourism Committee with a five-to-zero vote.
Key Provisions of Hawaii’s Sports Betting and Fantasy Sports Legislation
The proposed legislation would allow betting on professional, collegiate, amateur, and Olympic sports while explicitly prohibiting wagers on youth competitions, which are classified as events for individuals under the age of 18.
If enacted, the Hawaii Department of Business, Economic Development, and Tourism would be responsible for overseeing and establishing regulations for sports wagering. Online sports betting and daily fantasy sports would be regulated separately under the proposed framework.
The bills outline specific licensing requirements for operators, mandating that companies offering sports betting services pay a $250,000 license fee, while suppliers providing sports betting-related services would be required to pay a $10,000 fee. These licenses would be valid for a period of five years.
The types of wagers permitted under the proposed law include single-game bets, parlays, money line bets, in-game wagering, and proposition bets.
Hawaii is proposing a 10% tax on sports betting revenue, with funds directed toward programs focused on gambling prevention and treatment.
To ensure player protection, licensed operators would be required to monitor and report any suspicious betting activity. Additionally, the legislation includes provisions for a voluntary self-exclusion program aimed at helping problem gamblers. Responsible gambling messaging, including toll-free helpline advertisements, would also be mandatory.
Operators found in violation of the regulations could face fines ranging from $10,000 to $100,000, depending on the severity and frequency of the infractions. Repeat offenders could face up to five years in prison.
Representative Chris Todd, co-sponsor of HB 1308, defended the bill during the committee hearing, stating, “People are generally speaking very good at understanding what potential negative outcomes may arise from legalization but very bad at recognizing the current negative outcomes of prohibition.”
What’s Next for Sports Betting in Hawaii?
Several additional gambling-related bills remain under consideration in Hawaii, with some measures specifically focused on legalizing retail and online sports betting but excluding fantasy sports. Another bill proposes the establishment of the Hawaii Lottery and Gaming Corporation, which would oversee online casino games and poker, but not sports betting.
If the legislation is enacted, sports betting and fantasy sports could launch in Hawaii as soon as July 1, 2025. However, the regulatory process must still be completed, and the potential legalization of sports wagering would represent a major shift from Hawaii’s historically strict stance on gambling.
By fLEXI tEAM
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