Hawaii Taking Another Crack at Sports Betting, Gaming

Hawaii’s Brayden Schager, left, passes against Oregon during the first half in Eugene, Ore. Sept. 16, 2023.Two bills to expand gaming in the state are being consideredOne will legalize online sports betting in HawaiiThe second bill would authorize one 40-year casino license for the island of Oahu

Aloha means hello and goodbye, but it doesn’t mean sports betting…at least not yet.

Hawaii legislators are again taking up the issue of sports betting and legalized casinos. Two bills are currently on the table to legalize Hawaii online sports betting and allow for one casino license.

The state has debated sports betting and casino gaming for the past several years, but the legislation has never crossed the finish line.

Sports Betting Details Being Ironed Out

Rep. Daniel Holt (D-28) introduced HB 2765 to legalize online sports betting and HB 2762 to legalize one casino license in the state. The House Economic Development Committee heard testimony regarding both bills last week and both are scheduled for another hearing on Wednesday, Feb. 7.

HB 2765, if approved, will legalize online sports betting in the Aloha State through a series of three-year licenses. The price tag for a license, as well as the cost to do business through a sports betting tax rate, have yet to be announced.

According to the legislation, sports betting would be regulated by the Hawaii Department of Business, Economic Development, and Tourism. Sports betting operators would be eligible to apply for a Hawaii sports betting license as long as they’re already licensed in three other jurisdictions.

Despite no tax rate being mentioned in the bill, the Sports Betting Alliance, which represents DraftKings, Fanatics Sportsbook, FanDuel, and BetMGM, estimated in submitted written testimony that the state could see an additional $9 million in tax revenue through legalized sports betting.

“A regulated, competitive mobile sports betting market would replace the predatory, illegal platforms already operating in Hawaii and generate new revenue for the state through a policy that has the support of constituents. According to a 2022 poll conducted by Anthology Research, 73% of Hawaii residents surveyed support legalizing and regulating online sports wagering in Hawaii for adults 21 years of age or older to generate annual tax revenue,” wrote Kathleen Owen, an attorney with the law firm Orrick, Herrington & Sutcliffe LLP,  on behalf of the Sports Betting Alliance.

One Casino Under Gaming Bill

In addition to legalized online sports betting, HB 2762 will also provide the opportunity for one casino in the state.

If approved, one casino license for a term of 40-years will be available. A casino will be eligible to be constructed on the island of Oahu in the state.

The legislation would create the Hawaii Gaming Commission to regulate and oversee casino gaming in the state.