Lawmakers in Hawaii advanced a proposal to legalize statewide online sports betting despite significant public opposition and a split committee decision. The House Committee on Economic Development & Technology passed HB 2570 in a 5-2 vote, clearing the way for the measure to move ahead in the legislative process.
Hawaii Advances Online Sports Betting Bill
Rep. Daniel Holt, who has previously advocated for legal sports betting, voted in favor of the bill. Before the vote, he remarked that he appreciated the effort to advance it, but noted that it was not his idea, he had not been consulted, and he wanted to make that clear. The latest development on the matter comes as part of continued efforts to legalize gaming in Hawaii, as the state is an outlier in the US because it has no form of legal gambling whatsoever.
HB 2570 proposes that at least six online sports betting platforms be available, while prohibiting in-person wagering. The bill outlines a single launch date for all platforms, imposes a 15% tax on adjusted gross revenue, and sets both the application and annual renewal fees at $500,000. Licenses would remain valid for five years, with oversight of sports betting falling under the Department of Business, Economic Development, and Tourism.
Some Oppose the Bill
Naturally, with such a big step towards gambling in Hawaii being on the horizon, there is some opposition. Opponents of HB 2570 included several government agencies. These include the state attorney general’s office, Hawaii’s police department, and the Department of Health, along with members of the anti-gambling lobby and concerned individual citizens.
The most commonly cited reason for opposition was the potential impact on the community’s well-being. One woman shared that her family lost their home when she was five due to her father’s gambling addiction, which she noted “probably started innocently with sports betting.”
Among the most prominent opponents of HB 2570 is City of Honolulu prosecutor Steve Alm. He told the committee that sports betting is already “tarnishing sports”, referencing several major scandals in MLB and the NBA. He added that sports betting disproportionately affects lower-income individuals, citing a San Diego State University study showing that 96% of bettors lose. Alm also said that this means the system profits from those struggling with addiction, which he argued is not a business the community should support.
Despite these claims, the House Committee still went on with the bill, making Hawaii one of several US states that are considering legalizing sports betting. Another state looking at legalizing the practice is Wisconsin, as tribal leaders are urging lawmakers to accept mobile sports betting.
