Hawaiii remains one of the only states in the country without any form of regulated gambling. But some legislators are hoping to change that and have introduced bills that would legalize online gaming and sports betting.

HB1308 and SB1569 would legalize online sports betting and fantasy sports under the oversight of the Aloha State’s Department of Business, Economic Development and Tourism. The bills would tax gross receipts at 10%.

Sen. Kim Decoite (D) has also introduced SB1572, which would form the Hawaii State Sports Wagering Commission as part of the Department of Business, Economic Development, and Tourism. The bill is similar to the others filed and would legalize both retail and online betting with a 15% tax rate on gross receipts. Licenses would go to operators that are currently legal in at least three other states.

There would be no minimum for the number of licenses allowed under Decoite’s plan and fantasy sports are not included in the bill. SB373 is already under consideration as well, which would legalize fantasy sports.

Online Gaming Efforts

These aren’t the only efforts to legalize gambling in some way. Sen. Ron Kouchi (D) has proposed SB1507 to create the Hawaii Lottery and Gaming Corporation, which would contract with an operator that could offer online lottery, poker, and casino games. The proposal also includes sweepstakes gaming, but not sports betting.

The legislation appears to allow for joining the Multi-State Internet Gaming Agreement (MSIGA)) shared liquidity market, noting the state can “enter into agreements with other state gaming entities for the offering of multistate games, consistent with state and federal law.” Hawaii only has a population of 1.4, so joining up with other states for poker would be imperative.

Efforts have been made in the past to legalize online gaming and sports betting, but those never reached passage. The new bills may face some tough odds again. The governor’s office has projected billion-dollar surpluses for the next four fiscal years, but there are some economic headwinds in the state including Maui wildfire disaster recovery, declining tax collections, increases in state spending, inflation, and a declining population.

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