Hawaii bill to legalize online sports betting passes in the House
Aloha State politicians give green light to bill, albeit with amendments, that requires would-be li to offer digital betting in at least three states
Hawaii’s House of Representatives Committee on Economic Development has passed House Bill 2765 to legalize and regulate online sports betting.
The bill passed on Wednesday, February 7, with amendments, following five ayes, two noes, and one excused representative, though the cost for the three-year license was not announced.
Instead, a gap was left in the text where the figure should be: “The fee for an initial or renewal sports wagering operator license shall be $_.”
It was similar situation with the tax rate. “For the privilege of holding a license to engage in sports wagering as a sports wagering operator or sports wagering supplier under this chapter, there is hereby levied and shall be assessed and collected a tax equal to _ % of the adjusted gross sports wagering receipts and _ % of the gross receipts of a sports wagering supplier.
“The accrual method of accounting shall be used for purposes of calculating the amount of the tax owed by the licensee.”
The bill states that an operator qualifies for a Hawaiian license if it already offers online sports betting in “no less than three jurisdictions in the United States pursuant to a state regulatory structure.”
As part of the approved bill, an amendment was made to allow multiple operators to secure licenses and accept bets from customers aged 18 and older, unlike most other states where the legal age to gamble is 21.
State Representative Daniel Holt, Committee on Economic Development chair, introduced HB 2765 on January 24 and it passed its first reading. The draft legislation was scheduled for a second hearing on February 2 but was deferred until February 7.
Upon its passing, Holt said part of the funds generated from online sports betting will be used to create a “gambling mitigation program which currently does not exist in our state”. Funds raised through taxes will also be put towards battling the black market, Holt added.
In a quote published on Covers.com, Representative Elijah Pierick voted against HB 2765 due to his opposition to gambling.
He said: “I’m going to vote no against this bill, believing that gambling is wrong and that the tax revenue from this isn’t going to justify its legalization.”
Prior to the bill passing, Kathleen Owen, counsel attorney with Orrick, Herrington & Sutcliffe LLP on behalf of the Sports Betting Alliance, said the island state could see an extra $9m in tax revenue from legalized sports betting.
She wrote in written testimony submitted to Hawaii’s House of Representatives Committee on Economic Development: “A regulated, competitive mobile sports betting market would replace the predatory, illegal platforms already operating in Hawaii and generate new revenue for the state through a policy that has the support of constituents.
“According to a 2022 poll conducted by Anthology Research, 73% of Hawaii residents surveyed support legalizing and regulating online sports wagering in Hawaii for adults 21 years of age or older to generate annual tax revenue.”
Last week, Hawaii Senate president Ron Kouchi introduced Senate Bill 3376 which would legalize online sports betting and online poker in the state. It passed its first reading on January 26.