Panel advances sports-wagering bill amid split committee and public testimony
Summary
The committee advanced HB1308 to legalize and regulate sports wagering in Hawaii, adding criminal-history checks and temporary-license safeguards; the measure drew strong support from industry and unions and opposition from prosecutors and others concerned about social harms.
The House Committee on Judiciary & Hawaiian Affairs voted Feb. 12 to advance HB1308, which would legalize and regulate sports wagering in Hawaii and create licensing and tax frameworks. The committee added clarifying amendments requiring criminal-history checks for licensees and tightening temporary-license rules; the measure was advanced with recorded no votes and several members noted reservations.
Supporters including DraftKings and BetMGM said legalization would bring illicit online betting into a regulated market with consumer protections, responsible-gambling tools and treatment resources. Richard Taylor of BetMGM described deposit limits, self-exclusion tools and a partnership with a clinical provider offering no-cost treatment for problem gambling. The Iron Workers Stabilization Fund testified in favor, arguing legalized wagering would diversify Hawaii’s revenue sources and help retain residents.
Opponents included the City and County of Honolulu Prosecuting Attorney’s Office and the state Attorney General’s Office, which warned of increased financial harm and social costs tied to expanded gambling. Deputy Attorney General David Williams cited studies linking legalized gambling to higher rates of bankruptcy and family harm and urged caution; DCCA and the attorney general recommended a Sunrise Analysis (HRS 26H-6) or further study before authorizing a new regulated market.
Why it matters: Testimony focused on the fiscal tradeoffs and public-health risks of legalization. Proponents emphasized tax revenue and regulation; opponents pointed to addiction, family impacts and enforcement challenges. The Department of Taxation flagged administrative questions on how revenue allocations would be tracked if gaming receipts are collected under the general excise tax rather than a separate sports-wagering tax.
Committee action and next steps: The committee advanced the bill with amendments to strengthen licensing checks and clarify temporary-license revocation if an applicant is later found ineligible. The record shows several members voting no or recording reservations: Representatives Peruso, Takayama and Shimizu registered no votes; Representatives Bellotti and Hasham recorded reservations; Representative Garcia recorded a no vote. The bill will proceed to Finance, and the standing committee report asks Finance to consider tax-administration issues raised by DOTAX.
Ending: Lawmakers advanced a contentious bill that would move a large illicit market into state regulation; the measure now faces further review in Finance, where tax structure and consumer-protection provisions will be key bargaining points.
