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House Bill 1308, introduced by Rep. Daniel Holt, passed the Senate with a 15-10 vote on Tuesday (8 April) and now returns to the House of Representatives for concurrence on key amendments.

Should the House agree to the revised terms, Governor Josh Green is expected to sign the legislation into law, with implementation slated to begin on 1 July.

The rapid approvals of HB 1308 marks a significant development for Hawaii, one of only a few states that have yet to legalise sports betting.

The bill’s progression through the Senate surprised some observers, as earlier expectations anticipated stronger opposition and a more difficult legislative path.

However, the Senate’s approval came after the bill was swiftly moved through the influential Senate Ways and Means Committee, which introduced crucial amendments to the proposed regulatory and tax framework.

Among the key changes adopted by the Senate committee were the establishment of a 10% tax on adjusted gross revenues from online sports betting, and a licensing structure requiring operators to pay $250,000 for both initial licensing and renewals.

The legislation authorises the issuance of at least four online sports betting licences.

Initially, the bill assigned regulatory oversight of the new gambling activity to the Department of Commerce and Consumer Affairs.

However, testimony from department Director Nadine Ando indicated that the agency lacked the capacity to fulfil that role.

In response, the bill was amended to assign regulatory duties to the Hawaii Department of Law Enforcement, while tax enforcement will be handled by the Hawaii Department of Taxation.

Daily fantasy sports also included

In addition to sports betting, the bill includes provisions for legalising daily fantasy sports competitions within the state.

The incorporation of fantasy sports aligns Hawaii with a growing number of states that have formalised the legality of such contests in recent years.

Despite the bill’s approval, opposition remains within the legislature. Senators voiced concern about the potential social consequences of legalised sports betting.

Sen. Sharon Moriwaki cited personal testimonies from constituents who described the negative impacts of gambling addiction, including financial ruin and family disruption.

She warned that without a robust enforcement structure, the state risks exacerbating these issues.

Sen. Lynn DeCoite also spoke against the measure, arguing that encouraging gambling during a period of economic instability sends a harmful message.

She emphasised the potential for vulnerable populations to be adversely affected by the expansion of gambling access.

The sports betting legislation arrives amid a broader debate over state finances. Lawmakers are simultaneously considering a variety of tax increases affecting tourism, cigarettes, trucking, and unemployment insurance, among other areas.

The expected tax revenue from legalised sports betting is being viewed as one piece of a larger effort to bolster state finances amid uncertain economic forecasts.

The 2025 legislative session is scheduled to conclude on 2 May, though state legislators have left open the option of convening special sessions later in the year to address outstanding fiscal and policy matters.

If the House concurs with the Senate amendments and the bill is signed into law, Hawaii will begin the process of licensing operators and establishing a regulatory framework in time for the July launch.