Hawaii Sports Betting Odds Lengthen, as Chambers Converge for Compromise

Posted on: April 16, 2025, 07:56h. 

Last updated on: April 16, 2025, 08:49h.

Devin O'Connor @CasinoorgDevinO Read More

Expertise: Asia Pacific Gaming, Commercial Gaming, Legislation, Politics.

• Hawaii lawmakers are convening to try and find a sports betting compromise
• Opponents worry about problem gambling
• Proponents say Hawaiians already gambling on sports

Sports betting legislation in Hawaii has been a surprising mover in 2025, but the push to bring legal gambling on professional and college sports to the islands could be reaching an endpoint.

Last week, leaders in the Hawaii House of Representatives and Senate disagreed with their counterparts’ amendments to House Bill 1308 while the legislation was considered in their respective chambers. As a result, the two legislative bodies are converging, where a special conference committee will attempt to iron out the differences.

The Senate President and House Speaker appoint members, or “managers,” to the conference committee. Those members have not yet been named, but they will consist of key stakeholders, including committee chairs who oversaw the policy discussion up to this point.

Conference Goals

The assigned conference committee will focus on two key issues — money and how to protect Hawaiians, many of whom already fancy a bet either in Las Vegas or through illegal means like underground gambling hubs and offshore gambling websites.

For the financial component, lawmakers have presented varying licensing fees and tax rates for the possible online sportsbooks, for which a minimum of four licenses would be authorized. HB1308 initially suggested charging each approved sportsbook a $250K fee every five years and taxing oddsmakers’ money won from gamblers at 10%.

House lawmakers stripped the licensing fee and tax rate to garner enough support to pass the bill to the upper chamber. Senate lawmakers reimposed the $250K upfront fee and the 10% tax.

Those rates would be among the lowest of the 39 states and Washington, DC, with sports betting statutes signed into law. Hawaii Rep. Sue Keohokapu-Lee Loy (D-Hilo), a member of the House Finance Committee, said the upfront fees and low tax wouldn’t be sufficient to cover the government’s regulatory costs.

The sportsbooks themselves agree. A lobbying group representing the interests of FanDuel, DraftKings, BetMGM, and Fanatics suggested a more appropriate fee would be around $500K.

With this entire sum paid in year one to cover the five-year period, we believe that this sum will cover the regulatory costs,” an attorney representing the SBA testified before the Senate Ways and Means Committee earlier this month.

Hawaii Attorney General Anne Lopez’s office opposes the legalization of sports betting on the belief that such gambling would result “in adverse societal impacts, high costs to address those adverse impacts, and increased crime.”

Senate Ways and Means Committee Chair Sen. Donovan Dela Cruz (D-Mililani) agrees.

“With so many issues facing our state, such as lack of affordable housing, homelessness, drug and alcohol addiction, we should be focused on addressing these real issues that impact our residents instead of bringing in legalized sports wagering and gambling that will exacerbate the problems already facing our community. Is the increase in tax revenue worth the negative impact on the lives of Hawaii residents?” Cruz asked. 

Odds Long

With much disagreement standing in the way, and the Hawaii Legislature set to adjourn in a little more than two weeks on May 2, the odds at this point are seemingly not in sports betting’s favor. Of the 76 seats in the Honolulu capital, Democrats control 67.

Hawaii remains among the most restrictive states in the country, as it has no tribal or commercial casinos, iGaming, sports betting, parimutuel wagering, a lottery, or charitable gaming.