House Bill 1308, introduced by Rep. Daniel Holt, aimed to establish a regulated sports betting market in Hawaii. The bill passed both the House and Senate. However, it stalled due to a lack of agreement among lawmakers on crucial details. The deadline for passage was April 25.
“The best we could do was,” Holt, a Democrat, said. “There was significant progress made this year, but it seems like there was no consensus on the details: how much the tax would be, who would operate it, who would house the sports betting operation, and how the license and licensing fees would be paid.” So that lack of consensus prevented the bill from becoming law.
He added: “That’s the reality, and we need to work harder next year to try to answer the questions from other members and the public and see if we can raise that much-needed tax revenue for the state.” Holt expressed the need to address outstanding concerns for future legislative success.
Original Hawaii Gambling Bill
The original bill would have allowed a minimum of four licenses for sports betting operators. Each operator would have been required to pay $250,000. In addition, there would have been a 10% tax on Adjusted Gross Revenue (AGR). Estimates for state tax revenue have ranged from $10 to $20 million annually.
Additionally, the bill called for the return of daily fantasy sports (DFS) competitions. Legalizing DFS was intended to diversify gaming options and generate additional revenue.
Governor Josh Green supported the bill. He suggested that tax revenue from sports betting could help fund the new multi-million dollar Aloha Stadium project. The ambitious project would include the construction of a new stadium, development of the surrounding land, and the creation of an entertainment district with restaurants, housing, hotels, and cultural facilities.
However, Hawaii will remain without legal sports betting for at least another year. The delay represents a potential loss of revenue and economic opportunities for the state.
“That’s the only way to ensure that we can build an $800 million stadium that would be an attraction,” Green said, emphasizing the importance of sports betting to funding state projects.
Impediments to the approval of the bill
Obstacles to passing the bill remain, despite 38 states plus Washington, D.C., already offering sports betting in some form. The widespread adoption of sports betting in other states highlights the potential lost for Hawaii.
The Hawaii Department of Law Enforcement opposed the bill. Honolulu Police Department Chief Joe Logan said, “It is nearly impossible to regulate in a way that truly protects consumers. Our department sees firsthand how gambling-related crimes undermine the safety of neighborhoods.”
Holt disagrees, saying the proposed measures would address the need for greater oversight and accountability. “Sports betting is already happening on our islands — it’s only happening through unsafe offshore bookmakers and sites that offer no consumer protection and allow underage people to bet,” Holt said.
“With this legislation, we can join the 38 other states that have created regulated, consumer-protected sports betting markets and generate millions in revenue for our state.” Holt noted that regulation would bring significant benefits in terms of consumer protection and state revenue.
The Sports Betting Alliance reacted on social media to the bill’s failure, writing: “Hawaii can no longer ignore the illegal sports betting market. A legal, regulated market would provide critical safeguards and protections for players while generating millions in revenue for Hawaii.”
