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A digital sports betting bill in Hawaii has moved forward despite facing resistance from multiple government agencies and native Hawaiian groups.
The state’s Senate Joint Committee on Economic Development and Tourism and Commerce and Consumer Protection unanimously advanced HB 1308 on March 13, with four of the nine votes cast “with reservations.”
The proposed bill would authorize four digital sports betting platforms but no retail locations. Notably, it currently lacks a tax rate or licensing fees, as these were removed by a House committee to keep the bill alive. Having passed in the House and now clearing one Senate committee, the legislation continues to progress through the legislative process.
Debate Over Economic Impact and Social Risks
During the hearing, committee members questioned witnesses on the potential revenue legal sports betting could generate for Hawaii and expressed concerns about gambling addiction. While the bill made it out of committee, opponents significantly outnumbered supporters. Among the critics were various government departments and native Hawaiian organizations, while BetMGM and DraftKings provided testimony in an attempt to counter the concerns. However, nearly half of the committee appeared skeptical about the bill.
Deputy Attorney General David Williams voiced strong opposition, stating, “We are concerned that legalized gambling… will increase the risk of adverse social effects on Hawaii citizens.” He cited studies showing that in states where gambling is permitted, there has been “increased credit card debt, reduced credit and an increase in bankruptcies in the most vulnerable families.”
Williams further warned of gambling’s potential impact on domestic abuse and youth.
Representatives from the Department of Commerce and Consumer Affairs and the Department of Taxation testified in person, while the Department of Budget and Finance and other agencies submitted written opposition.
Native Hawaiian Leaders Urge Caution
Adding to the criticism, Brandon Maka’awa’awa, vice president of the Independent & Sovereign Nation State of Hawaii, pointed to an unfinished study on the effects of legalized wagering in Hawaii. He stated that moving forward without this study amounted to “irresponsible policymaking”, arguing that revenue projections supporting the bill “don’t hold up.”
Previously, BetMGM’s director of government affairs, Jeremy Linum, presented lawmakers with estimates that Hawaii could generate $10 million to $20 million in tax revenue per year, assuming a 10% tax rate. For comparison, he referenced other states:
Maine (population 1.4 million, slightly larger than Hawaii) launched digital sports betting in November 2023 with a 10% tax rate, collecting $6 million in tax revenue within a year.
West Virginia (population 1.77 million) has collected an average of $5.8 million per year from sports betting over four and a half years, also using a 10% tax rate.
Skepticism Over Revenue Projections
Committee Chair Lynn DeCoite asked Nadine Ando, director of the Department of Commerce and Consumer Affairs, how long it would take to implement legalized sports betting. Ando admitted she didn’t know, as her department would be responsible for drafting regulations and vetting applicants. She noted that most states with legal gambling have a dedicated gaming commission to oversee such processes.
Ando also referred to testimony from Boyd Gaming, which warned that “many other states of comparable size to Hawaii that have passed isolated sports wagering legislation have been disappointed in the outcome.” The testimony highlighted that “tax revenues from online sports wagering are often less than anticipated and revenues are usually not sufficient to fund or sustain regulatory and enforcement oversight and a responsible gaming infrastructure, which are crucial components to any regulatory framework.”
Summarizing the concerns, Ando concluded that legalized sports betting ‘just doesn’t make sense.’
Bill Moves Forward Despite Concerns
Despite the opposition, the committee advanced HB 1308. Before the vote, Senator DeCoite acknowledged that the issue “should be addressed up front” and made several administrative amendments, including modifying which agency would oversee regulation.
Senator Donna Mercado Kim, while also expressing concerns, acknowledged that illegal gambling already exists in Hawaii. She proposed an amendment to direct some of the proceeds toward education, which was approved.
With HB 1308 now moving forward, the debate over legalized digital sports betting in Hawaii continues, with strong opposition remaining a significant hurdle as the bill progresses through the legislative process.
By fLEXI tEAM
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