Senate committees pass sports‑wagering bill with amendments after extensive testimony on social costs and regulation

Senate committees on March 13 advanced House Bill 1308, relating to sports wagering and fantasy sports, after extensive testimony from state agencies, law enforcement, industry representatives and advocacy groups. Committees adopted an amended draft and directed further work as the bill progresses.

The Department of Commerce and Consumer Affairs (DCCA) submitted written testimony in opposition and Nadine Ando, testifying for DCCA, said the department stood on its written opposition and would be available for questions. The deputy attorney general, David Williams, told the committee the department opposed the bill "because it is concerned that legalized gambling in the form of sports wagering and fantasy sports conducted by business corporations or other money making enterprises on a large scale in Hawaii will increase the risk of adverse social impacts on Hawaii citizens." Williams cited studies referenced in written testimony linking legalized gambling to increased household debt, bankruptcies, domestic violence and harm to youth exposed to family gambling.

Supporters that testified included representatives of MGM and DraftKings, the Ironworkers Stabilization Fund and local building trades representatives who said legalized sports wagering could produce new state revenue to support education, infrastructure and other programs. Jeremy Limoon of MGM said MGM was "happy to be here to vocalize our strong support." DraftKings filed written testimony and a company representative stood on that submission. Several public commenters, including faith and community groups, the National Council on Problem Gambling and individuals with lived experience of gambling harms, urged rejection or deferral until a pending legislative working group completes a feasibility study.

Testimony highlighted both fiscal and regulatory uncertainties. Opponents and some agency witnesses said other states that legalized stand‑alone online sports wagering have not always realized expected revenue and that regulatory and enforcement costs are significant. Brandon Maka Ama, representing a working group assessing sports betting feasibility, said revenue projections were "misleading" and cited West Virginia and Wyoming as jurisdictions with modest tax receipts. Proponents said licensing fees and taxes could produce meaningful new revenue; one witness noted a draft license fee of $250,000 per operator in earlier drafts and suggested higher tax rates could increase receipts.

During decision making the chair moved amendments to replace DCCA as the primary regulator with DBEDT, to modify the definition of a qualified gaming operator to allow future inclusion of Hawaii‑based operators, and to include a technical amendment on jurisdictional language. The chair also incorporated a member request to allocate a portion of proceeds to K‑12 education in committee amendments. The motion passed in committee with recorded votes showing the chair voting yes, Senator Fukunaga recorded as voting with reservations, Senator Kim recorded with reservations, and other members split their votes; committees on Commerce and Consumer Protection and on Economic Development and Tourism recorded similar outcomes.

The committees also directed DBEDT to do additional homework and comparative analysis of other states’ regulatory structures and to incorporate concerns raised by DCCA, the Department of Taxation and the Attorney General into subsequent drafts. Multiple witnesses urged the Legislature to wait for the working group's report; committees nevertheless voted to move the bill forward with the adopted amendments.