Hawaii Senate committee defers sports betting bill as House counterpart moves forward

The Hawaii Senate has halted a bill to legalize online sports betting, just two days after its House counterpart advanced. Senate Bill 1569, which mirrored House Bill 1308, passed a Senate committee earlier this month by an unanimous 5-0 vote but was quickly deferred Wednesday by the Commerce and Consumer Protection Committee.

“After reviewing the testimony, the recommendation is to defer,” read Chair Donovan M. Dela Cruz from the document in front of him. That was the full extent of the reference to the bill at the session.

The proposed legislation aimed to legalize both sports betting and daily fantasy sports (DFS) under the oversight of the Department of Business, Economic Development, and Tourism, with an expected launch date of July 1, 2025. It called for licensing at least four online sports betting platforms with a 10% tax rate while establishing separate regulations for fantasy sports.

Supporters, including local workers’ unions and the sportsbook-led Sports Betting Alliance (SBA), argued that legalizing online wagering would generate significant state revenue and bring economic benefits, as seen in other states.

However, concerns were raised about the bill’s potential impact on problem gambling as well as doubts regarding its projected revenue benefits. The Hawaii Department of the Attorney General and other state agencies also expressed apprehensions, arguing that the provisions of the bill lacked thorough consideration.

While HB 1308 advanced through several House committees, it encountered resistance at every stage. Earlier this month, the House Judiciary & Hawaiian Affairs Committee narrowly approved it with a 6-4 vote. And on Monday, the House Finance Committee moved it forward with a 12-3 vote, but half of the “yes” votes were given with reservations. Lawmakers ultimately sent it to the full House after amending the bill to remove proposed licensing fees and tax rates.

SB 1569 and HB 1308 are not the only gambling expansion proposals under consideration this legislative session. A separate Senate bill, SB 1572, introduced by SB 1569 co-sponsor Sen. Kim Decoite, would legalize both retail and online sports betting but exclude DFS. Meanwhile, SB 1507 seeks to legalize online casino games and poker, but not sports betting. SB 373, another proposal, focuses solely on DFS legalization.

Despite being introduced earlier in the session, none of these alternative bills have made any legislative progress.