Hawaii will be making another attempt to legalize sports betting after years of coming up short. The Aloha State and Utah are the only two states in the nation that prohibit any form of gambling within their borders.
Can Sports Betting Become a Reality This Time?
Rep. Joe Mizuno filed a bill on January 20th to establish the framework to align with the other 35 legal markets on the mainland. In contrast to previous proposals, it does not mention casinos, slot machines, tax rates, fees, or ownership requirements.
Proposed bill HB 344 would legalize brick-and-mortar sports betting on the island of Oahu. In addition, this operation would establish the regulatory blueprint to bring mobile sports betting to the state.
Last year’s sports betting bill ran out of steam because of the writing in the bill. One of the segments included a 55 percent tax rate, which would have been the highest in the country, overthrowing both New York and New Hampshire, which has a 51 percent tax rate.
Mizuno’s bill allows for major mainland operators to enter the state, but he believes there is increasing support for gaming legislation. Having a reputable sportsbook conduct business would help the cause of legalizing sports wagering.
Currently, the only form of legal gambling in the state is peer-to-peer social gambling. Mizuno stated, “You always have to be cautious with gaming. The biggest gaming bill we ever passed was bingo. This will be difficult to pass, but I’m cautiously optimistic,…This is one of the first times I’m seeing ESPN, the local media, and a number of national stakeholders connecting with us and showing a lot of interest.”
Where Would the Generated Go if the Operation Became Legalized?
Sports betting in Hawaii has received a lot of backlash and remains a sensitive issue. There are no definite answers to how many operators would receive a license, and no one knows what the tax rate potential tax rate could be for online sportsbooks.
The lawmaker believes that it’s the right time to introduce sports betting as the operation has taken over the mainland. Still, people go to Las Vegas to play at the casinos, and he believes people will do the same when visiting the Aloha State.
Mizuno argues that legal sports betting could generate tax revenue that could be used to support various social programs. For example, a 25 percent tax rate could be used to house domestic violence, homelessness, and other issues that could use the extra funding.
What are the Benefits of Having a Sports Betting Market?
Hawaii has been a popular tourist destination, and according to estimates, 10 million visitors spent over $20 billion in 2022. Eric Ford of Full House Poker has said that annually, Hawaiians make over 500,000 trips to Las Vegas, spending an estimated $400 million to $800 million on gaming and sports betting.
A ridiculous tax rate could deter companies like FanDuel and DraftKings from pursuing market access in the state. It must be a reasonable number moving forward because operators have expressed their concerns in New York.
