by Ben Perks
A recently proposed sports betting bill would legalize online wagering in Hawaii and impose a 55% revenue tax on sportsbooks. Hawaii is one of two states (the other is Utah) that don’t allow any gambling activities. If HB 1815 is signed into law, it will make Hawaii’s sports betting tax rate the highest in the country. New York and New Hampshire currently share the title for the highest betting tax rate in the US at 51%.
Hawaii Sports Betting Tax Rate Confusion
State Representative John Mizuno, the vice-speaker of the House, introduced two new bills: HB 1815 to legalize online sports betting and HB 1820, which would allow a single land-based casino to open in the neighborhood of Waikiki in Honolulu.
Mizuno’s proposals didn’t get off to a smooth start, as the initial language of HB 1815 read that the state would impose a 55% tax on bettors’ winnings. The bill initially read: “There shall be levied, assessed, and collected a tax of fifty-five percent on all winnings paid out to any person by a sports wagering provider. The tax revenues shall be deposited into the sports wagering special fund.”
However, the vice-speaker later clarified that the bill proposes to tax gambling operators, not bettors. Mizuno added that the proposal copied New York’s successful approach.
The same bill outlines plans to create a Hawaii online sports wagering corporation to offer and regulate sports betting within the state. If the proposal is signed into law, this regulatory body will be able to offer sports wagering options on sporting events such as the NFL, NBA, NHL, etc., to bettors over the age of 18.
Casino Proposal
The second bill would allow one retail casino to offer wagering operations to locals and tourists. Mizuno’s aims to get the bill passed to help give the state of Hawaii an economic boost and create more employment opportunities for residents. The proposal also states that online sportsbooks and casinos wouldn’t help the economy as much as a brick-and-mortar establishment.
“The legislature finds that a single casino in Waikiki will not only provide tourists with memorable nighttime activities but will also stimulate the economy by creating hundreds of jobs and generating millions of dollars in revenue for the State. By comparison, other forms of gambling, such as lotteries, internet gambling, and non-casino electronic gambling, create few quality jobs and do not generate significant economic development in the State. Polls have shown that more than seventy percent of Japanese, Chinese, and Korean visitors approve of a casino in Waikiki,” the bill reads.
Other Sports Betting Bills
Another Hawaii State Representative, Chris Todd, has reintroduced his sports betting bill HB 736 he put forward last year. Although the bill failed to pass in 2021, it will be considered again in this year’s sessions.
Todd’s bill proposes the launch of an online sports betting pilot program. If approved, the trial would legalize online wagering until June 30, 2025. According to the bill, the Department of Business, Economic Development & Tourism of Hawaii would have the power to issue a total of five online sports betting licenses. Each gambling permit would cost $30 million.
Other gambling bills were carried over to 2022. These include SB 816, which would permit a state lottery; SB 1321, which proposes the construction of a casino in Waikiki; HB 383, which plans to allow live poker rooms; and HB 772, which would allow the construction of a casino on the islands of O’ahu.
Ben is a sports journalist & part-time trader with a passion for finding +EV bets. Ben lives in Madrid, Spain where he enjoys the live poker scene, and sunshine where he covers UFC, MLB, NHL, NBA, as well as tennis betting.
