Hawai’i residents will be able to place sports bets as soon as next year’s Super Bowl if House Bill 1308 survives the final stages of becoming a law.
The bill would legalize sports wagering in Hawai’i, allowing sportsbooks through certain apps. The final taxation number and how betting will be regulated is being hashed out among the House of Representatives and the Senate.
Rep. Daniel Holt (D of District 28) introduced the bill in hopes of bringing untapped revenue to Hawai’i.
“If people have the willingness to gamble and want to participate we should provide them a legal and safe method,” Holt said. “Legalizing online sports betting would accomplish both of these things, provide some much needed revenue for our state as well as providing a safe infrastructure for people who want to enjoy this type of entertainment.”
Iowa and Nevada have sports betting taxes of 6.75% while New Hampshire has a 51% tax, with most states falling between the 10% to 20% range. Holt says Hawai’i is targeting a rate of about 15% with an estimated $20 million in annual revenue.
The current draft of the bill has 7% of the taxes collected going to a gambling prevention and treatment fund with another 7% going to state programs that support education.
Hawai’i is the only state besides Utah that has no form of legalized gambling, and some, including the Honolulu Police Department, fear the introduction of gambling would lead to an increase in bankruptcy, crime, homelessness and divorce.
“The financial burden associated with these problems will far outweigh any benefit realized in the name of community betterment,” wrote Maj. Raynor M. Ikehara, of the HPD in a letter to state lawmakers.
Despite this, the prospect of gambling coming to Hawai’i is exciting for many people, including David Reardon, a sports columnist at the Honolulu Star-Advertiser. Reardon believes that legal gambling could lead to a decrease in underground gambling and that the people of the state could benefit from the tax funds rather than that money going to Nevada.
“(Illegal betting) Is happening now, but we are not getting any money from it,” Reardon said. “The state of Nevada isn’t giving us any money to have social services for these people who need it.”
One of the most-traveled destination spots for Hawai’i residents is Las Vegas, earning the nickname of the “Ninth Island.” If sports betting becomes legal, Reardon said, it could lead to more spending here in Hawai’i.
“Why should our uncles and aunties and kupuna have to get on an airplane and go to Las Vegas and eat Zippy’s chili in Las Vegas, when they could do that here?” said Reardon.
