Hawaii Moves Toward Sports Betting, Remains a Hub for Crypto Growth

Hawaii has edged closer to legalized sports betting after the House Finance Committee moved a bill forward.

HB 1308 was granted committee approval, with 12 representatives voting “Aye” and 3 “Noes.” However, six members voted “Aye with reservations.”

The House Finance Committee was the third and final committee to hear the bill, which now heads to the floor.

The bill was first heard by the Economic Development Committee on 31, January 2025. It was passed with amendments unanimously and headed to the Judiciary & Hawaiian Affairs Committee.

The bill was first heard by the JHA Committee on 12 February 2025 and again passed, with further amendments added by the Finance Committee.

Advocates for legalized sports wagering in the Aloha State will be keeping a keen eye on SB 1569, the Senate companion bill, which is set to be heard today.

The Finance Committee chairman, Rep. Yamashita offered amendments ahead of the vote that removed the tax rate and licensing fee, pending further review. The chair stated: “We do have to bring up gambling, so I don’t think it’s a bad thing to talk about.” With the amendments, the bill moves forward as a work in progress.

The bill’s original tax rate proposal was 10 percent on sports betting revenues and a license fee of $250,000. Rep. Keohokapu-Lee Loy, who voted aye with reservations to the regulations, voiced concerns about the suggested license fee of $250,000. The representative indicated that the cost “appears rather low for an industry that makes billions of dollars. I would love to see that license fee go up exponentially.”

Hawaii Lawmakers Consider Economic Benefits of Legal Betting

Local unions strongly support the legalization of sports betting in Hawaii, and they welcome any influx of capital to the state to help create wealth. The Sports Betting Alliance, comprised of BetMGM, DraftKings, Fanatics, and FanDuel, endorsed the expansion, suggesting it can curb illegal gambling and generate valuable tax revenue for the state.

Previously, Head of Government Affairs at BetMGM, Jeremy Limun has suggested that legalized online sports betting could generate between $10-$20 million per year if the state opts for a 10 percent tax rate.

Hawaii Embraces Crypto Companies, But Gambling Laws Lag Behind

Last year, Hawaii announced that cryptocurrency companies’ business activities will not be classified as money transmission under state legislation.

Beginning on 1 July 2024, crypto exchanges and firms were no longer required to obtain a money transmitter license to operate in the state. As such, there has been an influx of investment from crypto-first entities such as Coinbase, Metamask, Transak, BitPay and Trust Wallet.

Despite crypto providing ample business opportunities in the Aloha State, gambling legislation remains primitive as the state remains one of the only in the United States of America in which any form of gambling is illegal.

Although there may be a future where crypto sportsbooks are welcome to take wagers under expanded Hawaiian legislature, it’s safe to say that it will not be anytime soon.