Hawaii Online Sports Betting Bill Postponed by Senate Committee

By Matt Speakman,
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Last updated: March 3, 2025

On February 24, the House Finance Committee approved HB 1308, which made it seem like Hawaii had serious chances for legalizing digital betting in 2025. However, two days later, the Commerce and Consumer Protection Committee decided to defer its companion SB 1569.

Big Hopes Before the Postponement

After chairman Kyle Yamashita presented an amended version of HB 1308, it received the Finance Committee’s approval, with six members voting “with reservations”. The amendments suggested removing the 10% tax rate, which was intended to make the passage more acceptable.

Members of the committee discussed potential profit for the state during the hearing. Meanwhile, representative Sue L. Keohokapu-Lee Loy said that the $250,000 license fee appears low compared to the billions that the industry makes. According to Yamashita, the fee needed to go up, as the bill was still a work in progress.

The Senate Committee Decides to Defer the Bill

The Senate Committee didn’t discuss SB 1569 on 25 February. Instead, chairman Donovan M. Dela Cruz said that after reviewing the testimony, the recommendation was to defer. There are many opponents to the bill, including the Office of the Prosecuting Attorney, the Department of Business, Economic Development and Tourism, and the Department of the Attorney General.

The main concern with legalizing digital sports betting is how it would influence residents’ financial issues. The Narcotics Enforcement Division also expressed its opinion, saying that online betting is also associated with an increased risk of suicide, theft, and other crimes among people who have an addiction.

Negative Opinions Tip the Balance

Besides state agencies and responsible gambling organizations who shared their concerns, dozens of other opponents appeared in the 151-page written testimony. Individuals also shared their opinions, supporting their cases with personal stories or studies showing the negative effects of legalizing online gambling.

On the other hand, proponents of the bill include BetMGM, DraftKings, and other members of the SBA, who expressed their interest in establishing a licensed, controlled, and regulated sports betting industry. Individuals also supported the amendments, claiming that legalizing sports wagering would increase tourist interest in the state and bring additional revenue to the government.