Hawaii Pols Try Sports Betting Again, Introduce iGaming Bill

Posted on: January 28, 2025, 01:18h. 

Last updated on: January 28, 2025, 01:27h.

If at first you don’t succeed, try, try again appears to be a message not lost on lawmakers in Hawaii who again introduced a sports betting bill, and this time around, are rolling the dice on iGaming legislation, too.

Hawaii online sports betting poker
Bills to legalize online sports betting in Hawaii have been introduced. An iGaming bill is on the table, too. (Image: National Geographic)

The recently introduced Senate Bill 1572 (SB 1572), sponsored by Sen. Donna Kim and Rep. Lynn Decoite — both Democrats — provides for the establishment of the Hawaii State Sports Wagering Commission. If the bill passes, the commission would become part of the Department of Business, Economic Development, and Tourism.

Establishes penalties for violations. Specifies that sports wagering shall not be considered games of chance or gambling. Allows the commission to conduct background checks on applicants for a sports wagering operator license and persons in control of applicants for a sports wagering operator license. Requires tax revenue collected from sports wagering to fund certain initiatives, including 50 per cent for public education programs and 25 per cent for affordable housing,” according to a summary of the bill.

Politicians in the state also introduced House Bill 1308 (HB 1308) and SB 1569, both of which are directly aimed at legalizing mobile sports betting — something that has failed in Hawaii on multiple occasions. SB 1507, introduced by Senate President Ron Kouchi (D), pertains to iGaming and, if passed, would pave the way for the Hawaii Lottery and Gaming Corporation to regulate the industry there.

Hawaii iGaming, Sports Betting Bill Face Tough Roads

Hawaii is famously anti-gaming, implying that all of the aforementioned bills will face tough roads in getting to Gov. Josh Green (D) to be signed into law.

The state is one of just two — Utah is the other — with no form of legal wagering. In late 2020, then Gov. David Inge (D) opposed a proposed casino in Kapolei, the second-largest city on the island of Oahu. That could be one sign the iGaming bill could face tough sledding in the heavily Democratic state.

As for online sports betting, the new legislation represents some progress relative to past efforts. SB 1572 proposes a 15% tax rate on licensees accepting wagers at retail locations. HB 1308 and SB 1569, neither of which mention retail betting, pitch a tax rate of 10%. In either case, Hawaii would be at the more accommodative end of the sports wagering tax spectrum.

Three years ago, a politician there pitched a sports wagering bill featuring a staggering 55% tax, which would be 4% above the highest-tax states in the country.

Hawaii Could Be a Decent Sports Betting Market

Home to 1.44 million people, Hawaii ranks as the 41st-largest US state or territory and while that may imply its allure to gaming companies is limited, the opposite could prove true if iGaming and/or sports betting bills are passed there.

By population, Hawaii is larger than Washington, DC, and seven states that permit online sports betting. Thirty-eight states and Washington, DC allow some form of sports wagering. Missouri is slated to join that group later this year.