Online sports betting is legal in 35 states and Washington, D.C., but a bill to make it so in Hawaiʻi died at the state Legislature on Wednesday.
The American Gaming Association estimates that more than 270,000 people in Hawaiʻi use off-shore sites or unregulated bookies to illegally gamble. From one estimate provided by the Sports Betting Alliance, the state could generate $6.8 million annually through taxing the sports betting market.
Rep. Daniel Holt of Oʻahu chairs the House Committee on Economic Development. While killing House Bill 344, he said the money the state could earn by making this form of gambling legal isn't in line with the state's priorities.
"I think maybe at some point this may be a worthy cause for us, but I think at this point, $7 million a year may not be worth putting our communities at risk," Holt said. "There may be other opportunities in the future, but I think at this point we're going to be deferring this measure."
DraftKings government affairs manager Rebecca London explained that the program has the ability to set daily, weekly and monthly spending and deposit limits to protect consumers, when asked by Rep. Elijah Pierick of Oʻahu what strategies it employs to ensure clients don't abuse the software.
Holt also expressed concern about how the state would manage legalizing online sports betting when various other forms of gambling are illegal in the state.
HB344 is just one gambling-related measure that's been introduced this year. Another measure that would make operating an illegal gambling business a Class-C felony will be heard later this week by the Senate.
