• Industry
    • Opinion
    • Features
      • iGaming Data
      • Sports Betting Data
    • Finance
    • Online Casinos
    • Podcast

      News

      Tax Rate, Fees, Regulator At Issue As Hawaii Sports Betting Bill Goes To Conference

      Conference Committee has about two weeks to come to an agreement

      By Jill R. Dorson

      Last updated: April 15, 2025

      2 min

      hawaii surfboards

      Hawaii’s digital sports betting bill has hit a snag. HB 1308, which has made a surprising march through the House and Senate, is headed to Conference Committee after the House on Friday rejected an amended version passed by the Senate.

      After moving through Senate committees with no tax rate or application fee, both were added on the Senate floor. In addition, the regulator was changed in a Senate committee and the Department of Law is now named.

      HB 1308 would allow for statewide digital sports betting with a minimum of four platforms. There would be no retail locations.

      The bill initially had a 10 percent tax rate and a $250,000 application fee, but those were stripped in the House Finance Committee, where Rep. Sue L. Keohokapu-Lee Loy voiced concern that the application fee was too low.

      It “appears rather low for an industry that makes billions of dollars,” she said. “I would love to see that license fee go up exponentially.”

      Tax revenue projection off?

      There was also much discussion in the Finance Committee about the tax rate. BetMGM Head of Government Affairs Jeremy Limun suggested that tax revenue for Hawaii (population: 1.45 million) would range from $10-$20 million per year based on a 10 percent tax rate. Compared to states of a similar size, that projected tax revenue is high and the tax rate, at least per current trends, is low.

      While digital sports betting operators would embrace a 10 percent tax rate, the move of late has been higher rates to start as well as states proposing to raise their rates in the months and years after launch.

      In the last two years, Ohio has doubled its rate to 20 percent while Illinois shifted from a flat 15 percent tax rate to a sliding scale where the most prolific operators now pay 40 percent. In addition, Ohio Gov. Mike DeWine earlier this year proposed another doubling of his state’s tax rate, and North Carolina Republicans on Monday proposed an increase from 18 percent to 36 percent. The Tar Heel State launched sports betting 13 months ago.

      Lawmakers in Louisiana and New Jersey are among other states that have entertained increases as well.

      Local opposition heavy

      HB 1308 has met with heavy opposition throughout its run through the statehouse. Representatives from the state Attorney General’s Office, the Department of Consumer Affairs, law enforcement, and others voiced concern about the state’s preparedness to introduce gambling. In addition, a native Hawaiian group and problem and responsible gambling advocates are also opposed.

      Where does Hawaii Gov. Josh Green stand on sports betting? https://t.co/dz7CRE4wdi

      — Sue Schneider (@SuziQSchneider) April 9, 2025

      On March 13, the Senate Joint Committee on Economic Development and Tourism and Commerce and Consumer Protection moved the bill forward, but switched out the regulator. This happened after Nadine Ando, the director of the Department of Commerce and Consumer Affairs, told the committee that her agency didn’t have the bandwidth or experience to stand up legal betting. Ahead of the vote, Chair Lynn DeCoite swapped out the regulator to be the Department of Law.

      It’s possible that House members are concerned about this change or about the state’s ability to regulate. Hawaii does not have any form of legal gambling, meaning that whatever agency regulates will have a steep learning curve.

      Members of the conference committee have not been publicly released. Hawaii’s legislative session is set to adjourn May 2.

      Get Weekly Email Updates

      Covering all aspects of regulated U.S. online casinos, iGaming, sweepstakes, and more

      Related Posts

      Southern Ute Tribe Suing CO Governor After Being ‘Frozen Out’ Of Sports Betting Market

      atlantic city aerial

      New Jersey Online Casino Revenue Reaches Record $243.9 Million For March

      Louisiana Anti-Sweeps Bill

      Louisiana Anti-Sweeps Bill Headed To House Floor

      NYC Mayor Bally's Bronx

      NYC Mayor Helps Move Forward Bally’s Bronx Casino Proposal

      Recommended Read

      hawaii beach

      News

      Hawaii Senate Sends Amended Sports Betting Bill Back To House

      There’s More…

      Louisiana AG opinion sweeps

      News

      Louisiana Governor Vetoes Anti-Sweeps Bill

      June 13, 2025

      Chris Altruda

      Louisiana flag chain

      News

      Louisiana Legislator Files Bill To Ban Sweepstakes Sites — And Target Related Entities

      April 8, 2025

      Chris Altruda

      maryland sign

      News

      Atterbeary Makes Second Run At Legalizing Internet Casino Gaming In Maryland

      January 6, 2025

      Chris Altruda

      News

      Fox Confirms Plan To Purchase 18.6% FanDuel Stake Amid Valuation Dispute

      September 13, 2024

      Erik Gibbs

      Get Weekly Email Updates

      Covering all aspects of regulated U.S. online casinos, iGaming, sweepstakes, and more

      • About
      • Contact
      • Privacy
      • Terms
      • Disclosure
      • Responsible Gaming

      © 2025 Casino Reports. Web Design by Fhoke.