Hawaiian Senate president tables bill to legalize online sports betting and poker

Hawaii Senate president Ron Kouchi has introduced Senate Bill 3376 which would legalize online sports betting and poker in the Aloha State.

Legislation for online betting and poker has been an uphill battle in Hawaii, with previously proposed bills failing to gain traction.

SB 3376, which takes a different approach to previous proposed online betting and poker bills, passed its first reading on Friday (January 26) and has now been referred to various committees.

Primarily, tax revenue generated from the two verticals would be allocated toward a wildfire relief fund. 

Wildfires in Hawaii last summer caused around $6bn in economic losses, according to Moody’s RMS.

The bill, which makes no mention of retail sports betting, also aims to curtail illegal online gambling on the island.

The state legislature estimates that tens of thousands of Hawaii residents illegally gamble using online sports and poker websites or using mobile apps.

The state said that these sites are operated by offshore operators and aren’t subject to regulation or taxation by the state and that tens of millions of dollars are generated by these sites, with the state no receiving a cent in tax.

Furthermore, SB 3766 would establish a Hawaii Gaming Control Commission to regulate the verticals and issue licenses. 

The bill would limit the number of licenses to just one, with the successful operator only gaining access to the island’s market after completing a vigorous application process.

This involves requiring a prospective operator to apply for a license within 60 days of the application window opening, and, in that application, the firm must include a development plan estimating the potential number of employees, the economic benefit to the community, projected gross receipts, and a training program for its potential employees.

Each application will cost $50,000 to cover the regulator’s administration fees for background checks on the respective operator.

If costs exceed this figure, then the applicant must pay an additional amount fee on top, and, conversely, if costs come in under that figure, then the regulator will issue a refund. 

An applicant would also need to file a $200,000 bond before a license can be awarded. 

The single license would last for 10 years and can be renewed for a further 10 years if agreed. 

Operators awarded a license will need to adhere to strict rules, including a minimum age of 21 for bettors and operator employees, and a maximum bet of $1,500 per event.

SB 3376 would also make the provision for an assistance program for problem gamblers in the state.