Hawaii's digital sports betting legislation faces complications as HB 1308 moves to a conference committee. The house rejected an amended version of the bill that the senate passed on Friday. Initially processed in senate committees without taxes or application fees, these elements were later introduced on the senate floor, alongside a change in the regulatory oversight, now involving the department of law.
HB 1308 aims to establish state-wide digital sports betting with at least four platforms, excluding any retail locations. The bill began with a proposed 10% tax rate and a $250,000 application fee, but these were removed by the house finance committee. Representative Sue L Keohokapu-Lee Loy expressed concerns, stating that the application fee seemed too low for an industry generating billions. She suggested an exponential increase in the license fee.
During discussions in the finance committee, BetMGM’s head of government affairs, Jeremy Limun, estimated potential tax revenue for Hawaii at $10 million to $20 million annually, based on a 10% tax rate. With a population of 1.45 million, this projection ranks high when compared to similar-sized states. While operators might favor a 10% tax rate, trends show that states are increasingly setting higher initial rates and planning subsequent increases post-launch.
Hawaii's legislative session is scheduled to conclude on May 2.
