The Hawaii sports betting bill that met with frustration and got pushback from multiple state agencies as it moved through the legislature died in conference committee Friday.
Rep. Greggor Ilagan, the House conference chairman, told Senate chair Lynn DeCoite, “At this point, we have a House and Senate disagreement. So what we could do is work on this so we can meet the deadlines and get through a better bill next legislative session.”
The publicly streamed portion of the conference committee meeting lasted less than two minutes. It’s surprising that HB 1308 got to either chamber floor, given that the House removed the tax rate and application fees in order to move the bill forward and that there was enormous pushback from state agencies ranging from the district attorney’s office to the Department of Business, Economic Development & Tourism.
During a Senate committee hearing April 2, it was decided to name a new regulator, the Department of Law Enforcement, after other candidates testified that they did not have the resources or education to be able to launch legal sports betting.
‘Gotta work harder next year’
Bill sponsor Daniel Holt, who was on the House conference committee, told Hawaii News Now those issues were the key stumbling blocks.
“The tax amount, who would operate, who would house the operation of sports betting and give out the licensing, [the] licensing fees … it is what it is and just gotta work harder next year,” Holt told the TV station at the capitol Friday night. “We have to try to answer the questions that the rest of the members and the public has and see if we can capture this tax revenue that we much need for our state.”
Conference committee reports for non-fiscal bills were due by 6 p.m. local time last Thursday and reports for fiscal bills, which HB 1308 was ultimately classified as, were due by 6 p.m. last Friday. The legislature is set to adjourn Friday.
At the beginning of the legislative season, it’s likely that Hawaii, along with Nebraska, were not high on the radar as serious candidates to add digital sports betting. But lawmakers in both states moved bills to chamber floors before opting to defer. Nebraska’s bill sponsor asked to defer his bill last Wednesday, 3½ hours into a filibuster attempt.
With Hawaii lawmakers delaying the decision on whether to legalize, there are no current state legislatures seriously considering adding sports betting. Lawmakers in South Carolina did debate a bill last week, and a new Minnesota bill dropped Thursday, but it is unlikely either will gain traction. In South Carolina, lawmakers appear to still be in the educational stage. In Minnesota, repeated efforts to bridge issues among the state’s tribes, charitable gaming, and horse race tracks have failed.
South Carolina’s session ends May 8 and Minnesota’s closes May 19. It’s possible that 2025 could be the first year since the Professional and Amateur Sports Protection Act was overturned in 2018 that no state legalizes sports betting. That was nearly the case last year, but Missouri voters legalized it via ballot initiative in November.
Tax rate removed, then reinserted
In Hawaii, the conference committee was comprised of Ilagan as the House chair, Holt, Lauren Matsumoto, and Daniel Tarnas. On the Senate side, DeCoite was the chair and was joined by Dru Kanuha and Jarrett Keohokalole.
Through months of committee meetings, lobbyists from BetMGM and DraftKings as well as the local ironworkers’ trade association testified in favor of the bill. But the influence of native Hawaiian groups, government agencies, and problem and responsible gambling opponents far outweighed the proponents.
When the bill was filed, it had a 10% tax rate and a $250,000 application and annual renewal fee. Both were stripped when the House Finance Committee advanced the bill in February. DeCoite’s Ways and Means Committee reinserted the original numbers just before sending HB 1308 to the Senate floor. But House members previously raised red flags about both, suggesting that Hawaii could command a higher tax rate and fees.
“At this moment, it is very hard to get a compromise,” Ilagan said during the conference committee meeting.
