Hawaii’s legalized sports betting hopes flounder
Two senate committees defer on sports betting bill to all but kill hopes of Aloha State progressing with legalization this year
Hawaii’s hopes of passing sports betting legislation in 2025 appear to be fading after two senate committees deferred on a bill that would regulate the vertical.
Senate Bill 1,569, which would have allowed four operators to launch in the state, was withheld by the senate committees on Commerce and Consumer Protection and Ways and Means.
The two committees deferred on the proposed legislation on February 26, leaving slim chance of a regulation progressing in this legislative session.
The bill had acted as a companion to House Bill 1,308, which had been approved by the senate on February 24 with some amendments. It is expected that without backing in the senate, the companion House Bill will ultimately die too.
To coincide with the hearing of the legislation, a 151-page document containing written testimonies from supporters and denigrators of the bill was published.
Included in the document was a written submission from the Sports Betting Alliance trade body, which argued that legalized sports betting would increase tax income for the state and better protect consumers.
DraftKings also submitted an independent filing written by senior government affairs manager Rebecca London.
London’s note read: “A market with multiple operators increases the overall economic impact that sports wagering has in the state through license fees, advertising, and promotional events.
“Further, a competitive mobile market provides steady tax revenue.”
BetMGM also filed a supportive submission in which the operator called out unlicensed businesses already serving Hawaiian consumers.
The submission highlighted Kalshi’s recently launched future event contracts product which was live for the Super Bowl in all 50 US states, as well as unlicensed sites such as Bovada and Stake.
Jeremy Limun, BetMGM director of government affairs, wrote: “American event-based trading companies, such as Kalshi – which had allowed bettors to make wagers on the US presidential election – have also entered sports betting, allowing users to place bets in all 50 states, including on the most recent Super Bowl.
“Just like Stake, Bovada, and many other illegal operators, Kalshi takes sports bets from Hawaii residents.
“Yet, despite their rapid proliferation the illegal and gray market online sports betting industry, including this latest crop of event-based trading platforms and online sweepstakes, is not subject to any state gross sports betting tax; does not offer any meaningful responsible gambling tools; and does not employ sophisticated KYC processes.”
Opponents to SB 1,569 that submitted testimonies include the Hawaii Family Forum, the Institute for Human Services, and Stop Predatory Gambling.