Hawaii is one of the few states without any form of gambling, but sports betting appears to be the best chance to lift that strict prohibition, as evidenced by the latest gaming measure advancing out of committee and into the legislative pipeline.
Betting on Hawaii
The Sports Betting Alliance (SBA), a gaming trade association that represents bet365, BetMGM, DraftKings, Fanatics, and FanDuel, spoke in favor of sports betting in Hawaii at a recent hearing.
The SBA believes that a licensed, legal sports betting market would not only generate revenues for the state but would also implement guardrails to protect customers from predatory sites and introduce responsible gambling resources.
On its website, the SBA highlighted three primary reasons why sports betting would benefit the citizens of Hawaii:
- It’s already happening. Hawaii residents are betting with illegal bookies and on unregulated offshore sites because there’s no legal option.
- Money is going to the wrong places. Every dollar bet illegally is a dollar lost to bad actors – that’s money that could stay here in Hawaii and be used to fund education, housing, and healthcare.
- Hawaii residents are at risk. Illegal operators offer no age verification, no consumer protections, and no oversight.
Legislative Momentum
Given that Representative Daniel Holt’s sports betting bill passed both the House and the Senate last year, the paradigm in Hawaii may be shifting in favor of sports betting.
Representative Holt has again sponsored the newest iteration of a sports betting bill in the form of HB 2570 that was advanced on Wednesday when the Economic Development and Technology Committee voted, 5-2, in favor of sending the bill to the committees on Judiciary & Hawaiian Affairs (JHA) and Consumer Protection & Commerce (CPC).
Vocal Detractors
It is not hard to find politicians and governmental agencies that are vehemently opposed to sports betting, including the Attorney General‘s office, the Honolulu Police Department, the Department of Commerce and Consumer Affairs, and the County of Honolulu.
Brandon Maka‘awa‘awa, VP of the Nation of Hawaii, which represents native Hawaiians, is also adamantly opposed, stating, “Online sports wagering does not create jobs, provide revenue back into our communities, or have a lasting economic impact in Hawaii. Almost all activity happens on platforms based outside of Hawaii, meaning revenue leaves the islands while the responsibility for impacts remains in our communities.”
However, proponents of sports betting have one significant politician on their side, the governor himself.
Governor Josh Green was asked about the prospect of sports betting last year and said, “Look, as long as there’s some safeguards with gambling addiction services and so on, if the Legislature goes to the full way and passes it, I’ll likely let it become law.”
