Hawaii Sports Betting Bill Heads to Committee to Over Senate Changes

After a miracle run, the Aloha State’s latest sports betting bill faces one final hurdle.

The Hawaii House has rejected Senate amendments on sports betting bill HB1308, sending the bill into a conference. Members from the House and Senate will meet to see if they can reach an agreement that can pass both legislative bodies. 

The committee will have until May 3 to reach an agreement, as that is the final day of the legislative session.

Tax Rate and Licensing Fees Stall Bill

One of the reasons previous sports betting bills have failed is the debate over the operator tax rate and licensing fees. The House stripped those numbers out of HB1308 before sending it to the Senate, hoping it would allow for a more open discussion on what the industry would look like. 

The Senate Ways & Means Committee updated the bill to include a 10% tax rate and a $250,000 licensing fee. The group hopes both legislative bodies will agree on this, but that doesn’t appear to be the case.

Sports Betting Overcoming Long Odds in Hawaii

While sports betting proponents have concerns over how the committee will proceed, they have plenty of reason to celebrate. When HB1308 was initially proposed, few supporters believed it would reach a Senate floor vote. However, the bill has already cleared the House, the influential Senate Ways & Means Committee, and a full Senate vote.

The bill’s unlikely success is primarily due to the belief that sports betting is already legal in Hawaii. Offshore and illegal bookmakers operate on the islands, leading to problem gambling, which is beginning to rise.

Can Bill Pass with a 10% Tax Rate?

Debates over the tax rate on regulated sports betting have raged across the US. Many states originally set them low but have since fought hard to raise them. The industry's revenue is far greater than expected, as is the damage being done by the rise in problem gambling. 

The fear of problem gambling is the driving force behind the opposition to regulated sports betting. That has led many lawmakers to demand a higher tax rate to help fund public programs to address the issue, arguing that operators should pay their fair share.