Hawaii Takes Big Step To Legalizing Mobile Sports Gambling

Hawaii has taken a big step towards becoming the 40th state to legalize mobile sports gambling. On Tuesday, the Senate's Ways and Means Committee approved an amended sports gambling bill, HB 1308. The bill now returns to the House for a concurrence vote.

Once back in the house, the bill is expected to pass even after a powerful Senate committee made changes to the original bill. The Senate Ways and Means Committee changed the tax rate to 10% of gross gaming revenues and the licensing fee to $250,000.

What Is In The Bill & Go-Live Date

There isn’t anything groundbreaking in the bill, but there are a few standouts.

As stated, HB 1308 sets taxes on operators' gross related revenues at 10%, making the tax rate one of the lowest in the US. Only Indiana (9.5%), Michigan (8.5%), Iowa (6.75%), and Nevada (6.75%) have lower tax rates.

Hawaii is expected to generate $250 million in tax revenue by legalizing sports gambling. Educational programs and problem gambling prevention programs would receive funding from this bill. Each would get seven percent of the tax revenues generated.

A minimum of four mobile sports gambling licenses will be made available. Again, each licensee would have to pay a $250,000 license fee and another $250,000 to renew their license every five years.

Giant sportsbooks FanDuel, DraftKings, and BetMGM have been vocal in their support of sports betting in Hawaii by campaigning members of the state legislature. All three are expected to have a license.

Per the bill, a go-live date will be no later than 180 days from the act's effective date. Assuming the bill is approved, the effective date would be July 1, 2025, meaning sports gambling must be live no later than December 28, 2025.