Hawaii's HB 1308, which proposes allowing four digital sports betting platforms without any retail locations, has encountered significant opposition from various government entities. These include the attorney general, local police, and the departments of taxation and finance. The department of commerce and consumer protection, initially designated as the regulatory body for the bill, is also against it.
In contrast, industry support has been notable, with campaign contributions providing insight into legislative dynamics. An analysis of donations indicates that several lawmakers who received funding from the Sports Betting Alliance (SBA)—which had not contributed to Hawaii legislators prior to 2024—have taken steps to advance gambling legislation, including HB 1308.
Governor Josh Green received donations from Boyd Gaming, a company that facilitates travel packages from Hawaii to its Las Vegas venues. Despite opposing two digital gambling bills, Boyd has expressed support for a proposal to study gambling in the state and testified against the expansion.
The State of Hawaii Campaign Spending Commission reported that certain legislators received $1,000 contributions from the SBA between December 17-20, 2024. Among the recipients are two committee chairs: Lynn DeCoite from the senate economic development and tourism committee and Jarrett Keohokalole from the senate commerce and consumer protection committee. Both voted in favor of moving HB 1308 through their committees.
While the committees passed the bill unanimously, the votes included four with reservations, indicating some lawmakers had reservations about full approval. Other recipients of donations include Representative Daniel Holt, Senator Dru Kanuha, Senator Christopher Todd, and Senate President Ron Kouchi. DeCoite has her own similar bill, which passed out of her committee but was ultimately deferred by a joint meeting.
During discussions on SB 893, a competing bill promoting land-based casinos, DeCoite expressed hesitations about gambling expansion despite voting in its favor, remarking: 'Casino gambling has not always been a favorite subject.'
Next, HB 1308 will head to the ways and means committee, where DeCoite and Kanuha serve. Boyd Gaming's recent contributions to Green occurred during his trip to Las Vegas aimed at understanding sports tourism, with donations of $2,546 and $3,000 recorded on October 11. Notably, these came after he attended a Las Vegas Raiders game hosted by Boyd executives.
Green's stance on gambling is still evolving; in a January interview, he mentioned supporting 'careful exploration' of sports wagering with appropriate safeguards. Recently, legislative activity around sports betting included hearings on SB 891, which seeks to form a working group to assess prior gambling proposals and their feasibility.
Discussion within the committee highlighted concerns about including representatives from companies like BetMGM, Boyd Gaming, and DraftKings. Representative Ikaika Hussey suggested it would be inappropriate for these corporations to participate in the working group's decision-making process. Committee member Lauren Matsumoto echoed concerns about naming specific companies, while Representative Adrian Tam advocated for transparency in the group’s composition.
Ultimately, the committee voted to eliminate named companies but allowed for three individuals from the gaming community to be included. Lawmakers across various committees have consistently expressed reservations about HB 1308, with some voting 'yes' with reservations during house floor discussions. Concerns have been raised regarding the impact of gambling on local communities, including potential increases in addiction and changes to the integrity of sports.
In the senate, the bill moved forward with a vote of 5-0, although a couple of those votes were again 'with reservations.' Concerns voiced during the hearings included additional staffing needs for regulatory bodies and the potential expenses associated with managing legalized sports betting. Subsequent amendments to the bill have shifted regulatory responsibilities from the commerce department to the department of economic development and tourism, as the conversation around gambling regulation in Hawaii continues to evolve.
