If at first you don't succeed, try, try again seems to resonate with lawmakers in Hawaii who have once more presented a sports betting bill, and this time, are taking a chance on iGaming legislation as well.
The newly presented Senate Bill 1572 (SB 1572), backed by Sen. Donna Kim and Rep. Lynn Decoite — both members of the Democratic Party — establishes the Hawaii State Sports Wagering Commission. Should the bill be approved, the commission will integrate into the Department of Business, Economic Development, and Tourism.
"Establishes penalties for violations. Specifies that sports wagering shall not be considered games of chance or gambling. Allows the commission to conduct background checks on applicants for a sports wagering operator license and persons in control of applicants for a sports wagering operator license. Requires tax revenue collected from sports wagering to fund certain initiatives, including 50 per cent for public education programs and 25 per cent for affordable housing,” according to a summary of the bill.
Lawmakers in the state have also put forward House Bill 1308 (HB 1308) and SB 1569, both targeting the legalization of mobile sports betting — an effort that has repeatedly failed in Hawaii. SB 1507, proposed by Senate President Ron Kouchi (D), relates to iGaming and, if approved, would enable the Hawaii Lottery and Gaming Corporation to oversee the industry in the state.
Hawaii iGaming and Sports Betting Legislation Encounter Difficult Challenges
Hawaii is well-known for its opposition to gaming, suggesting that all the previously mentioned bills will encounter significant challenges before reaching Gov. Josh Green (D) for approval.
The state is among only two — the other being Utah — without any type of legal betting. In late 2020, former Governor David Inge (D) was against a suggested casino in Kapolei, the second-biggest city on the island of Oahu. That might be an indication that the iGaming bill may encounter significant challenges in the predominantly Democratic state.
Regarding online sports betting, the new law signifies some improvement compared to earlier attempts. SB 1572 suggests a 15% tax on licensees that take bets at physical locations. HB 1308 and SB 1569, both omitting references to retail betting, propose a tax rate of 10%. In both situations, Hawaii would fall at the more lenient side of the sports betting tax range.
Three years prior, a politician in that area proposed a sports betting bill that included an astonishing 55% tax, surpassing the highest-tax states by 4%.
Hawaii Might Be a Viable Sports Betting Market
With 1.44 million residents, Hawaii is the 41st-largest state or territory in the US, and while this might suggest that its appeal to gaming firms is restricted, the contrary could be accurate if iGaming and/or sports betting legislation is approved there.
In terms of population, Hawaii surpasses Washington, DC, and seven states that allow online sports wagering. Thirty-eight states plus Washington, DC permit various types of sports betting. Missouri is set to become a part of that group later this year.
