Hawaii Is Eyeing A Digital Sports Betting Bill

Things seem to be taking shape for Hawaii regarding legal online sports betting this year. Presently it is one of two states in the United States that does not have any legal gambling option. There is no sportsbook, casino, or even a state-managed lottery - which is strange considering many states use lotteries for revenue.

However, an amended version of the HB 1308 bill recently got approval from the finance committee. Even though six committee members voted “with reservations,” the bill has moved to the house floor Keep reading as we give you insights into the progress of the sports betting bill and the future of online sports betting in Hawaii.

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HB 1308 Bill: What does it entail?

The HB 1308 bill aims to legalize online sports betting, and fantasy sports contests for those residing or visiting Hawaii. It also intends to allow the Department of Commerce and Consumer Affairs to regulate sports wagering in the state.

What’s more, the bill indicates licensing requirements for sports betting operators and suppliers.

The bill gets support from unions and Industry leaders

Local unions indicated that they are in support of the House bill. They are of the opinion that it's a way of reducing the high living costs. What's more, representatives from DraftKings and the Sports Betting Alliance have also shown their support.

They stated that legal online sports betting will make it less difficult for authorities to curb illegal gambling activities, and boost revenue from taxes. BetMGM's Head of Government Affairs, Jeremy Limun suggested that the tax revenue for the state should be around $10 - $20 million yearly.

This figure is based on operator earnings of $100 - $200 million annually, 10% tax rate, local population, and a handle of $1 billion annually.

To determine the likely impact on Hawaii, here are comparisons from states with similar numbers of residents that recently legalized online sports betting:

• Maine: Has a population of 1.4 million. It kicked off sports betting in November 2023 and got $550 in revenue in the first year. At a 10% tax rate, it brought in a tax revenue of $6 million.
• West Virginia: This state with a population of 1.77 million, legalized online sports betting in September 2019. In total, the state has earned a massive $2.8 billion in revenue and claimed $25.9 million in tax revenue.

Opposition raises concerns over gambling addiction and other crimes

During the hearing, various opponents who testified against the bill pointed out the dangers of addiction. They also noted the increased likelihood of bankruptcies and other crimes that stem from gambling addiction.

To deal with these concerns, it was pointed out that the bill will only support online sports betting. What’s more, there will only be four licenses issued, and customers will be able to make payments with their credit cards. This is a payment method that some legal sports betting states like Massachusetts and Iowa do not support.

The SB 1569 companion bill which is to be heard on Wednesday, aims to create a Problem Gambling Prevention and Treatment Special Fund. In addition, the bill will indicate what it deems appropriate funds to deal with these concerns.

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Other proposed bills

SB 893, a bill that aimed to legalize casino gambling in the state failed to move forward. This was after opposition from many government organizations, who disputed that casino gambling could cause social and financial risks.

The proposed bill would have created a Hawaii Gaming Control Commission. It would have been responsible for regulating casino operations in the Aloha Stadium Entertainment District.

Unlike the HB 1308 bill, SB 893 came with a proposed 15% wagering tax on gross revenue from casino gaming. Supporters argued that it could be used to develop the economy and other public services.

Is gambling currently impossible in Hawaii?

So, does this mean those who reside in the Aloha state will be unable to wager on casino games or sports? Not necessarily, as many reliable sweepstakes casinos offer their services in this state.

Since they operate under sweepstakes laws and don’t require any cash deposit to begin, you can play in Hawaii without issues. Check out legal social sportsbooks and casinos to register at pending when the bill makes it through.

These platforms let you place sports predictions using virtual currencies that have no monetary value outside the casino. You can play for free with Gold Coins which will get you more coins if you win.

Players who want to redeem cash prizes will have to play with Sweeps Coins. These are the alternative currencies on sweepstakes sites that you can trade for prizes. Unlike Gold Coins, you can’t purchase SCs and only get them for free or as a bonus.

What the future holds

The advancement of the HB 1308 bill is a great sign and indicates hope for online sports betting in Hawaii. Subsequent debates will most likely amend and refine the bill to ensure that there is minimal social and financial risk.

If the bill gets approval, it could be the beginning of a major shift in the future of online gambling in the state. Aside from being a great source of revenue, it could act as a doorway for other forms of gambling – including online casinos. We’ll be sure to keep you posted if there are further updates.

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