Hawaii’s online sports wagering and fantasy sports contest bill, House Bill 1308, progressed from the Senate Committee on Commerce and Consumer Protection and Economic Development and Tourism last Thursday with a mixed reception from lawmakers and lobbyists.
The latest amendment to the House Bill specifies that sports wagering and fantasy sports contests would not be considered contests of chance or gambling. It passed from both committees unanimously.
Proponents of the bill argue that the legalization of digital sports betting would benefit Hawaii. Rebecca London, the senior government affairs manager for online operator DraftKings, provided written testimony regarding the potential revenue Hawaii could generate annually and argued that the Aloha State is already losing money to illegal online wagers.
“To create an effective legal market, legal operators must be able to compete with pricing from illegal, offshore sportsbooks that do not face the same taxation and regulatory costs,” London wrote.
Yet, despite the potential revenue boost for the state, opponents of the bill contended the estimates provided by London and other proponents. Brandon Maka‘awa‘awa, vice president of the cultural advocacy group the Independent Sovereign Nation State of Hawaii, compared Hawaii’s revenue estimations to West Virginia, asserting that projections would not hold up.
“West Virginia, despite legalizing sports betting in 2019, has only generated just $20 million in tax revenue, and it began over five years ago at the same 10% tax rate that is being contemplated (here),” Maka‘awa‘awa said.
Other proponents brought up the social aspects of online gambling, referencing gambling addiction and debt as potential worries if the bill is legalized.