House bill for online betting in Hawaii, HB 1308, forwarded to committee following the House's rejection of proposed amendments in the gambling legislation.
The digital sports betting bill, HB 1308, is now in the hands of a conference committee after hitting a roadblock in the legislature. The House rejected the changes made by the Senate, which included the proposal of a 10% tax rate and a $250,000 application fee, as well as shifting the regulatory authority to the Department of Law.
It's worth noting that HB 1308 aims to create a digital-only sports betting market, with at least four online platforms operating statewide. Unlike many other states, Hawaii's approach would eschew physical sportsbooks, making it one of the more geography-restricted markets.
Representative Sue L Keohokapu-Lee Loy raised concerns about the affordability of the $250,000 application fee, stating, "It appears rather low for an industry that makes billions of dollars. I would love to see that licence fee go up exponentially."
Now, both chambers present different interpretations of the bill, prompting it to be sent for further negotiation in a conference committee.
During this digital-only market debate, the tax discussion continues to be a hot topic. BetMGM's Jeremy Limun estimated that Hawaii could generate between $10 million and $20 million annually in tax revenue at a 10% rate. However, some critics question these projections, pointing out that other states have opted for higher tax rates and still brought in lower revenue, casting doubt on the current predictions.
With the legislative session wrapping up on May 2, the conference committee faces a tight window to reach a compromise and secure approval from both chambers.
In the past, states have raised sports betting tax rates post-launch, trading higher revenue targets for operator-friendly margins. This trend could influence the final version of the bill in Hawaii.
Unfortunately, despite initial hopes, HB 1308 did not pass during the 2025 legislative session, due to unresolved disagreements over regulatory authority, licensing, and taxation. Honolulu Mayor Rick Blangiardi was among those opposing the bill, citing concerns about community stability. Sponsor Rep. Daniel Holt, however, pledged to revisit the effort in 2026. The final draft included provisions for a Problem Gambling Prevention Fund and criminal background checks for license applicants, but the lack of consensus on foundational issues ultimately derailed the legislation.
- The conference committee is tasked with reaching a compromise on HB 1308, a bill aiming to create a digital-only sports betting market, as both chambers have presented different interpretations of the bill.
- Rep. Sue L Keohokapu-Lee Loy voiced concerns about the affordability of the $250,000 application fee proposed in HB 1308, suggesting that the licence fee could increase exponentially.
- The tax discussion remains a contentious issue in the digital-only market debate, with BetMGM's Jeremy Limun predicting that Hawaii could generate between $10 million and $20 million annually in tax revenue at a 10% rate, but some critics questioning these projections and pointing out potential higher revenue from states with higher tax rates.
- Past precedent indicates that states have raised sports betting tax rates post-launch, opting for higher revenue targets but more operator-friendly margins. This trend could potentially influence the final version of HB 1308 in Hawaii.
