Hawaii’s HB 1308, a bill proposing digital sports betting across the state, is headed to a conference committee after hitting a wall in the legislature. The House rejected changes added by the Senate, which included tax details and licensing rules.
Good to know
- Hawaii’s HB 1308 would allow digital-only sports betting statewide—no physical sportsbooks involved.
- The bill proposes at least four licensed platforms to operate online.
- Current tax rate discussions and application fee levels are facing pushback.
What started as a clean proposal with no set tax rate or licensing cost got more complex as it advanced. The Senate added a 10% tax rate and a $250,000 application fee during its floor session. It also shifted the proposed regulator to the Department of Law.
However, the House had removed those financial provisions earlier in the process. Representative Sue L Keohokapu-Lee Loy raised concerns that a $250,000 fee was far too low. She said, “It appears rather low for an industry that makes billions of dollars. I would love to see that licence fee go up exponentially.”
With both chambers now offering different versions of the bill, the proposal is being sent to a conference committee for further negotiation.
HB 1308 calls for a digital-only market with a minimum of four online sportsbooks. There would be no retail betting locations, making Hawaii’s approach one of the more restricted by geography.
The tax debate continues to stir conversation. BetMGM’s Jeremy Limun estimated that Hawaii could collect between $10 million and $20 million in annual tax revenue at a 10% rate. However, critics note that similar states have aimed for higher taxes and still brought in lower revenue, casting doubt on those projections.
Across the U.S., states have begun raising sports betting tax rates post-launch, opting for higher revenue targets rather than operator-friendly margins. That trend could affect how Hawaii shapes its final version of the bill.
Time is running short for lawmakers to work out a compromise. The legislative session closes on 2 May, giving the conference committee a narrow window to finalize terms and get approval from both chambers.
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