Hawaii Senate approves bill to legalize online sports betting and fantasy sports

In a historic shift, Hawaii's Senate has approved a bill to legalize online sports betting and fantasy sports, potentially setting the stage for the state’s first legal gambling operations. The measure, HB1308, cleared the Senate with a 15-10 vote and now heads back to the House for concurrence following several amendments. If approved, the bill would move to Governor Josh Green for his signature.

The legislation outlines provisions for licensing at least four online sportsbook operators and includes regulations for fantasy sports. This marks a notable policy reversal for Hawaii, one of only two U.S. states that currently prohibit all forms of gambling.

Throughout its legislative journey, the bill faced consistent opposition from various local government agencies. The contentious nature of the vote was evident immediately after the session, when a bystander shouted from the gallery: “Shame on all of you. You represent the people, not your self-interest.”

Debate around the bill’s oversight framework intensified in the Senate. Originally, the measure placed regulatory authority with the Department of Consumer Protection, but the department objected, citing insufficient infrastructure and concerns about the bill’s financial feasibility.

The bill also reinstates a 10% tax rate on operator revenue and sets a licensing fee of $250,000, restoring provisions that were temporarily left undefined during earlier stages of the legislative process.

Between the low licensing fee, taxation, and infrastructure, Nadine Ando, Director of the Department of Commerce and Consumer Affairs, said she did not believe this was an endeavor that would even cover its own costs.

The final version instead assigns regulatory duties to the Department of Law Enforcement. However, lawmakers raised concerns about the timing and operational capacity of the new department. The bill’s proposed implementation date of July 1, 2025, gives the department under three months to hire personnel and establish regulations.

Senator Sharon Moriwaki, who opposed the measure, questioned the practicality of adding such a substantial task to the portfolio of newly appointed Department of Law Enforcement Director Mike Lambert. Her remarks resonated with several colleagues who asked for her statement to be entered into the record on their behalf.

Uncertainty also remains over taxation logistics. The Department of Taxation indicated that the current version lacks clarity on how to tax industry suppliers, an issue expected to be addressed when the bill returns to the House.

Despite these unresolved details, supporters of the bill stated new revenue streams are needed amid rising fiscal pressures. Senator Angus McKelvey underscored the state’s economic challenges, attributing urgency to federal budget constraints and global economic instability.

“We need this revenue because of what we are facing in the state of Hawaii from this unprecedented disaster in Washington, D.C. It’s not just the blatant up-front cuts, it’s the inflation. It’s the tariff wars. Screws, right now, have gone up 70%,” he said.

If the House concurs with the Senate's amendments and Governor Green signs the bill into law, Hawaii would officially join the majority of U.S. states that have embraced legal sports betting in the wake of the Supreme Court’s 2018 decision to overturn a federal ban.