Hawaii will not see sports betting legalized anytime soon after the Aloha State failed to move on to a bill last Friday that would have made it possible for locals to plonk down a wager on sports events.
During a joint conference committee meeting, lawmakers barred the passage of House Bill 1308 which sought to legalize gambling in the final stretch of the legislative session that is due to wrap up on May 2.
Hawaii comes close to legalizing sports – fails again
One of the bill’s backers, Rep. Greggor Ilagan, acknowledged the defeat, but remained fairly optimistic about the future of sports gambling in Hawaii as a rule. Despite the disagreements on a legislative level, Rep. Ilagan is confident that a revised draft could make it through next year.
House Bill 1038 offered some insight into what the sports gambling industry in the Aloha State could look like and further signaled willingness from a diverse range of political backers, including Gov. Josh Green who said that if an approved bill hit his desk, he would not move to veto it – an important prerequisite for passing sports gambling laws in most cases.
House Bill 1038 will likely serve as the basis of future legislative efforts. The bill sought to introduce Internet sports gambling, with a 10% tax charged on gross gaming revenue, and a $250,000 license fee per license holder.
The bill’s passage has been stopped because of opposition to Internet gambling. Among the people to oppose the bill were Mayor Rick Blangiardi, Police Chief Arthur Logan and Prosecutor Steve Alm who issued a joint statement in which they urged lawmakers to push back against the legalization of online gambling, which has been described as a "predatory activity."
Another source of discontent has been the fact that the operators of online sports betting would be companies such as DraftKings or FanDuel, which have been seen as outsiders that would come in, generate profit, and leave Hawaii to deal with the fallout of rising addiction levels.
Serious consequences of regulated online gambling, critics say
"The consequences are real: mounting debt, family breakdown, and even wage garnishment for those who can't pay," the joint statement said.
However, backers of regulating sports betting have struck a different chord, arguing that the tax revenue the activitywould generate would help address a number of outstanding budgetary issues. Furthermore, gambling is already happening with little support for those suffering from gambling-related harm.
The funds raised from taxing a regulated industry would allow the establishment of a dedicated treatment fund and thus seek to help consumers. These arguments will ring familiar during the next legislative session, with the stalemate in legalizing sports gambling in Hawaii still unbroken.
