A bill that proposes to legalize Hawaii sports betting is set to go to conference after the House voted against the Senate. A conference committee with members from both chambers will debate the bill before the May 1st deadline of passing new legislation.
HB1308 was originally passed in the House, but on Thursday, the chamber voted to disagree with all bills amended in the Senate.
If the conference committee can come to an agreement, then it would be left to Gov. Josh Green to sign off the legislation.
Green remains open to making Hawaii sports betting legal. He commented that it could be a big boost to the state and the extra funds could go towards the Aloha Stadium being planned.
Green commented, “That is the one way to immediately guarantee you could build an $800 million stadium, and it would be an attraction. Again, some people will hesitate. All I can tell you is it’s on the rail, and people would have to go there to possibly lose their money, maybe make some money, but a lot of people find entertainment in that. I see a lot of local families going to Las Vegas and I would love for them to stay here when they can. That’s another consideration.”
Hurdles to legal Hawaii sports betting
We reported last week that the Aloha state was on the verge of legalizing sports betting for the first time. But, we may have spoken too soon.
The disagreement appears to center around the tax that will be levied on sports betting companies. The Senate passed the bill with a $250,000 license fee and a 10% tax rate.
A pro-sportsbook lobbying group, Sports Betting Alliance, suggested a $500,000 license fee would be more appropriate to cover oversight costs. The group also recommended a $20,000 tax for suppliers, which currently stands at $10,000.
The Senate amended the bill to give the Department of Law Enforcement responsibility for overseeing gambling on sports. Previously, it was under the control of the Department of Commerce and Consumer Affairs.
Some opponents of the bill continue to have reservations about how much of a burden the legislation will be. Sen. Sharon Morikawa voiced concerns over the ability of the Department of Law Enforcement to cope.
When the bill was passed in the Senate by 15-10, there were also voices of opposition. An observer shouted, “Shame on all of you. You represent the people, not your self-interest.”
Some of the people, however, would welcome legalization. The American Gaming Association estimated there was $300 million bet illegally in Hawaii. The rise of prediction markets that offer pseudo-sports betting and crypto betting sites doing similar suggests there’s a big market. It would seem only a matter of time before the state cashes in.
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