Hawaii Sports Betting Bill Overcomes Odds to Pass Senate Vote

The Aloha State may finally be ready for a regulated sports betting market.

Surprisingly, the Hawaii Senate passed sports betting bill HB1308 with a vote of 15-10 this week. The bill would legalize sports betting and establish a framework for the industry. It sets the operator tax rate at 10% and a licensing fee of $250,000.

HB 1308 will now return to the House, where lawmakers will review and vote on the Senate's changes. If it passes, the bill will go to the Governor to be signed into law.

Few Expected Bill to Make it This Far

Hawaii has seen several previous attempts to legalize sports betting, but all have failed. Strong opposition from various lawmakers and groups was too much to overcome, but it appears that isn’t going to be the case in 2025.

HB1308 gained momentum after passing the House, but few expected it to advance. The bill was sent to the Senate Ways & Means Committee after that, where it was expected to fail. Instead, the committee approved the bill 11-2 and set a tax rate and licensing fee. Those two numbers have stalled previous sports betting bills, but that wasn’t the case when the Seante floor vote came.

Will House Support Hold?

The House initially passed HB1308, but that doesn’t mean it will do so again. The most significant change they’ll need to agree on involves the operator tax rate and licensing fees. The House left that part blank when it passed it, as those numbers have been hotly debated. The Senate Ways & Means Committee chose the numbers they believed would give the bill the best chance to pass.

Aside from Senate changes to the bill, House lawmakers will also face considerable pressure from outside groups. Many opponents have accused the Senate of prioritizing its own needs over the state’s. One observer shouted at Senators after the vote, shaming them for supporting the industry.

While the majority of Hawaii residents support sports betting, the opposition is loud and fierce. Time will tell if that pressure will lead some representatives to change their vote.

Lawmakers Acknowledged Threat of Problem Gambling

Opponents of HB1308 have pointed out the immense impact legal gambling can have on the population. Each US state has seen problem gambling numbers spike since legalizing the industry, but Hawaii lawmakers believe the issue is already spreading on the island.

Several lawmakers who switched to support legalizing sports betting did so believing that problem gambling was already an issue. Offshore sportsbooks operate in the state, and sports prediction markets are rising. While legalizing sports betting wouldn’t fix that, it would generate funds to provide resources to those struggling with gambling addiction.