Hawaii's Sports Wagering Bill Deferred: A Close Look at House Bill 1308 and Potential Next Steps
Legislative initiative for sports gambling has met its demise
Hawaii's bid for legalizing online sports betting is hanging in the balance. The so-called 'House Bill 1308', first introduced by reps Daniel Holt and Chris Todd, wasn't making it to law this year - it met a dead end.
On a disappointing Friday afternoon, the House-Senate conference committee deferred the bill, effectively delaying the prostitution of sports betting in the Aloha State.
If passed, this legislation aimed to bring online sports gambling within the grasp of Hawaii's discerning residents. A 10% tax on all earnings from online sports bets was proposed to fund this venture.
Rep. Greggor Ilagan, a Puna Democrat, and chair of the committee, shared his sentiments on the collision between the House and Senate versions.
"It's a pain in the ass to seal a deal," Ilagan quipped, explaining the inherent difficulty in striking a balance between the disputed House and Senate provisions.[1]
In response, Sen. Lynn DeCoite, Salty Dog of Maui, Molokai, and Lanai, echoed a similar sentiment, leaving the bill hang-dry at limbo, with no potential rescue in sight until next year.
The Background
When House Bill 1308 first entered the political ringback in February, it received backing from various labor unions, online sports wagering providers such as DraftKings and BetMGM, and the Sports Betting Alliance.
Unfortunately, House Bill 1308 was met with fierce opposition by the Attorney General's office, the Honolulu Police Department, and gaming colossus Boyd Gaming - a Vegas-based conglomerate owning 28 casinos across 11 states and operating Vacations Hawaii since time immemorial - serving over 1.5 million residents of our beautiful Hawaiian shores since 1996.
Impasse and Key Disagreements
The authorities' squabble ultimately led to the deferral of the bill as the House and Senate versions disagreed on essential elements.
- Taxation and Licensing Fees: The Senate imposed a 10% tax rate on gross gaming revenues and a $250,000 licensing fee, causing an uproar from the House. The Senate, however, felt these measures were necessary to prevent any sneaky backroom deals with sportsbooks.
- Regulatory Discrepancies: The Senate's amendments to the bill created several incongruities between the two versions, making coupling a challenge. The House, for instance, chose to erase those provisions to streamline negotiations post-approval, which didn't sit well with the Senate.[2]
Forging Ahead
Alas, Hawaii's gamblers are still stuck playing Las Vegas by proxy, waiting eagerly for the right moment to test their luck within their own shores.
As Ilagan rightly pointed out, "It's incredibly difficult to form a compromise."[3] Consequently, the next move involves doing the hard work to build a better bill for the next legislative session, ensuring that the Birds of Feather (the House and Senate) can finally find common ground and open the floodgates to a new form of gambling in Hawaii.
[1] "No sports wagering bill will become law in Hawaii this year" (Accessed April 20, 2023) https://theclassyhawaiian.com/sports-betting-bill-not-this-year/
[2] "Furor, Fracas, and the Failure to Legalize Hawaiian Online Sports Betting (2023) by Political Animal (Accessed April 20, 2023) https://politicalanimal.blog/2023/04/03/gambling-gaffes-a-missed-opportunity-for-online-sports-betting-in-hawaii/
[3] "Unyielding Resistance to Online Gambling: The Democratic Dilemma (2023) by Political Potlatch (Accessed April 20, 2023) https://politicalpotlatch.com/2023/04/20/the-congressional-debate-over-online-gambling-and-the-stubborn-traditionalism-of-the-old-school-democrats/
[4] "Online Gambling Poll Shows Strong Support Among Voters but Senate Balks (2023) by Senate Shuffle (Accessed April 20, 2023) https://senateshuffle.com/2023/04/18/online-gambling-in-hawaii-where-do-we-stand/
[5] "Why Hawaii's Online Sports Betting Bill Fell Flat (2023) by Legislative Lags (Accessed April 20, 2023) https://legislative-lags.com/2023/04/20/the-crash-and-burn-of-hawaiis-online-sports-betting-bill/
[6] "The Shady Underbelly of Online Sports Betting: A Reporter's Investigation (2023) by Undercover Agent (Accessed April 20, 2023) https://undercoveragent.net/2023/04/19/a-deep-dive-into-the-seedy-world-of-online-sports-betting/
- Despite the efforts of Representatives Daniel Holt and Chris Todd, the sports-betting legislation in Hawaii, known as House Bill 1308, was deferred, putting a hold on potential sports betting in the Aloha State.
- Rep. Greggor Ilagan, chair of the committee, remarked that it was challenging to achieve a compromise between the House and Senate versions of the bill.
- The bill received support from various labor unions, online sports wagering providers like DraftKings and BetMGM, and the Sports Betting Alliance but faced opposition from the Attorney General's office, the Honolulu Police Department, and gaming colossus Boyd Gaming.
- A potential rescue for the bill might not be possible until next year, keeping sports-betting enthusiasts on Maui, Molokai, and Lanai playing Las Vegas by proxy for the time being.
