Hawaii is on the verge of becoming the first U.S. state to legalize digital sports betting, following the Senate's approval of an amended version of HB 1308 by a vote of 15-10 on April 8. Among the 15 votes in favor, four were cast 'with reservations.' The bill has now been sent to the House for further consideration. If the House gives its nod, the bill will head to Governor Josh Green, who has been advocating for funding to revamp Aloha Stadium District but has yet to indicate whether he will approve the legislation.
The journey of HB 1308 through the state legislature has been met with challenges. Several state agencies, a native Hawaiian group, and others have voiced opposition, while lobbyists from BetMGM and DraftKings, along with a local ironworkers’ union, have expressed support for the bill. Throughout the process, lawmakers have raised concerns and many voted with reservations.
The bill is set to take effect on July 1, but it lacks a specific launch date for operations. Typically, states require between six months to a year to establish a market. Some, such as Indiana and Iowa with pre-existing casino frameworks, managed to launch within three months.
As Hawaii steps into the regulatory arena, it faces the challenge of doing so with an inexperienced regulator and no established gambling infrastructure. HB 1308 contains an 'emergency' provision that would allow the regulator to expedite rule-making and issue temporary licenses. Key aspects of the bill include:
– Bettors can fund wagering accounts via credit or debit cards, wire transfers, various online or mobile payment systems, and through bonuses or promotions.
– Seven percent of tax revenue will be allocated to initiatives for problem and responsible gambling.
– Only operators already active in at least three other U.S. jurisdictions will be eligible for licensing in Hawaii.
