Like gambling expansion bills in other states, HB 1308 in Hawaii has faced opposition from the start. The bill would allow four digital sports betting platforms and no retail locations.

But as the bill has moved through the house and progressed in the senate, what is unique is that much of the opposition has come from government agencies ranging from the attorney general and local police to the departments of taxation and finance. In addition, the department of commerce and consumer protection — which was initially named in the bill as the regulator — opposes the bill.

Support from the industry, meanwhile, has been tangible as well as vocal. Donations made to lawmakers reviewed by iGB reveal that some lawmakers who received donations from the Sports Betting Alliance (SBA) — which prior to 2024 had not made a donation to any Hawaii lawmaker — sponsored gambling bills this session. And in some cases, those legislators have aggressively moved HB 1308 forward.

In addition, Gov. Josh Green received two donations from Boyd Gaming, which offers package deals for travel from Hawaii to its Las Vegas properties. Boyd Gaming testified against Hawaii gambling expansion for the first time this year. The company opposes two digital betting bills, but supports a gambling study proposal.

According to the State of Hawaii Campaign Spending Commission, the “candidate named committees” of six Hawaii legislators received $1,000 contributions from the SBA between 17-20 December 2024. BetMGM, DraftKings, Fanatics Betting & Gaming and FanDuel are SBA members.

On the list of recipients are two committee chairs — Lynn DeCoite, chair of the senate economic development and tourism committee, and Jarrett Keohokalole, chair of the senate commerce and consumer protection committee. HB 1308 moved out of a joint meeting of the two committees, with DeCoite and Keohokaloe both voting in favor.

The committees moved the bills unanimously, but four of the 10 votes were “with reservations”, meaning the lawmakers were on the fence about approval.

Four others received donations

Other donation recipients among lawmakers were:

— Representative Daniel Holt, co-sponsor of HB 1309, who is on the finance, tourism and economic development & technology committees.

— Senator Dru Kanuha, sponsor of SB 893, which called for land-based casinos, who sits on the ways and means committee.

— Senator Christopher Todd, co-sponsor of HB 1308, who is on the tourism and economic development & technology committees.

— Senate president Ron Kouchi.

DeCoite sponsored a bill similar to HB 1308 in the senate, which passed out of her committee. The bill was ultimately deferred by a joint meeting of the commerce and consumer protection and ways and means committees. DeCoite also supported SB 893, but the same joint committee ultimately agreed to defer that bill.

During the hearing to defer SB 893, DeCoite seemed to speak against a gambling expansion, though she voted for it.

“Casino gambling has not always been a favorite subject,” DeCoite said. “Regardless of if we are flying to Vegas or flying to any other place, we’ve always had our challenges here in Hawaii.”

The next stop for HB 1308 is the ways and means committee. DeCoite and Kanuha are on that committee.

Boyd Gaming donates at interesting time

Also among the donations were two from Boyd Gaming to Green, the governor, for $2,546 and $3,000 on 11 October. There was also one for $2,700 made by Boyd Gaming to Kauai mayor Derek Kawakami on 3 September 2024.

The donations to Green were made in the middle of a trip to Las Vegas to “learn about sports tourism”, per a press release from his office. During that trip, Green attended a Las Vegas Raiders game with Boyd Gaming executives 13 October, according to a source. Boyd Gaming properties — there are 10 of them in the Las Vegas area — are marketed as the “official and exclusive” local casinos for the Raiders.

Green’s 10-15 October visit to Las Vegas was related to the gambling mecca’s rise as a sports destination. He has been vocal about supporting a new multi-use stadium in Hawaii, but his position on gambling expansion is unclear.

With regard to legal sports betting, Green told Hawaii News Now in January that he “supports careful exploration of sports wagering in Hawaii, provided that proper safeguards are in place to prevent abuses”.

As to sports betting, the most recent gambling hearings and votes were on 19 March and 21 March when the house tourism and economic development committees moved SB 891 forward. The bill would create a working group to study past proposals to legalise gambling. The goal would be to determine “if any have the potential to to be implemented by the state”.

The measure also calls for study of a potential gambling framework and the feasibility of “gaming activities at the New Aloha Stadium Entertainment District”. The bill is still in committee, and no studies have been completed.

Discussion around study bill raises questions

During the 19 March hearing, there was much discussion about who should have a seat on a study committee. In the original text, lawmakers wrote that representatives from BetMGM, Boyd Gaming and DraftKings would have seats at the table. BetMGM and DraftKings are SBA members, and their representatives have been consistently testifying at gambling hearings in Hawaii. Boyd has also testified at multiple gambling hearings.

At the recent hearing, representative Ikaika Hussey said, “I think it would be inappropriate for those corporations or their designees to be part of the decision making and to be part of the authoring of the final work product for the working group. For that reason, I think they should be removed.”

Committee member Lauren Matsumoto said, “There are many gaming corporations and we’re naming DraftKings and MGM, and that is my concern.”

Representative Adrian Tam argued that the bill would allow for “the working group to appoint anyone else that has interest and experience. I think that by naming them right now, although it might be awkward, we’re treating it as transparent as we can on who is going to be there.”

Holt said he agreed that companies should not be named, but he recommended seats for two gaming companies. “If we specifically name them, it doesn’t give us any leeway,” he said.

The committees opted to remove the named companies from the bill, but it would allow for the working group to have “three individuals from the gaming community.”

Key issues still outstanding

In every committee, as well as on the house floor, some lawmakers approved HB 1308 “with reservations”. On the floor 4 March, in addition to 15 “no” votes, three members voted “yes” with reservations. And in two house committee votes, there were enough yes votes “with reservations” that had those members voted no, the bill may have been tabled.

Also telling is how committee chairs have moved the bill forward. In the house finance committee 24 February, chair Kyle Yamashita offered a verbal amendment that was accepted, removing the 10% tax rate and $250,000 application and licence fees when it appeared the bill would not pass. His committee passed the bill and sent it to the house floor.

Neither money issue was addressed on the house floor. At that time, opponents voiced concern about local dollars being diverted to out-of-state operators; the growth of gambling addiction; and harm to the purity of sports. Some compared harm from wagering to that of heroin and fentanyl. One lawmaker contended any revenue the state would get from legal sports betting would be “dirty” money.

During the senate economic development and tourism hearing 13 March, the vote to move the bill forward was 5-0. But two of those votes were “with reservations”. DeCoite, the committee chair, rushed witnesses through testimony, allowing about a minute each. She then pointedly questioned Nadine Ando, the director of the department of commerce and consumer affairs.

Ando said that her department would need additional staff and that the “complexity and significant expense” associated with regulating legal sports betting might make her department “not be suited” to regulate. DeCoit amended the bill to change the regulator to the department of economic development and tourism.

When she called the vote, she said, the “conversation should be had and we should be addressing this up front”.