HB 1308 Hawaii House · 2025 Regular Session

RELATING TO SPORTS WAGERING.

Summary

Allows for the regulation of sports wagering by the Department of Law Enforcement. Establishes licensing requirements for sports wagering operators and sports wagering suppliers. Establishes a general excise tax to be levied on sports wagering operator licenses. Establishes the Problem Gambling Prevention and Treatment Special Fund to be administered and expended by the Department of Health. Specifies that legal sports wagering and fantasy sports contests shall not be considered contests of chance or gambling. Authorizes DLE to perform criminal history record checks on applicants and licensees relating to sports wagering. (SD2)

Bill status passed both 4 of 5 stages cleared

Introduction

Jan 2025

Committee Review

Apr 2025

House Passage

Mar 2025

Senate Passage

Apr 2025

Governor

Introduced Jan 22, 2025 Last action Apr 24, 2025

Maddy AI version diff · 5 comparisons

What changed between versions

HB1308_SD1 → HB1308_SD2 · 11 edits

MAJOR

This bill establishes a comprehensive regulatory framework for sports wagering in Hawaii, creating new licensing requirements for operators and suppliers, setting up a special fund for problem gambling prevention, and amending existing tax and criminal statutes to exclude legal sports wagering from gambling prohibitions.

Scope change

The bill expands state regulatory authority to include sports wagering, which was previously not explicitly regulated under Hawaii law, by creating a new chapter dedicated to sports wagering regulation.

SCOPE

Created a new chapter establishing the Department of Law Enforcement as the regulatory body for sports wagering, replacing the previous Department of Business, Economic Development, and Tourism oversight.

ELIGIBILITY

Established licensing requirements for sports wagering operators ($250,000 fee) and suppliers ($10,000 fee), with only qualified gaming entities eligible to apply for operator licenses.

FISCAL

Created a Problem Gambling Prevention and Treatment Special Fund administered by the Department of Health, funded by 7% of sports wagering taxes for prevention programs and 7% for education initiatives.

Amended the general excise tax statute to impose a 10% tax on adjusted gross sports wagering receipts, replacing the previous tax structure for this activity.

DEFINITION

Added specific definitions for sports wagering terms including 'amateur sports event', 'professional sports or athletic event', 'youth sports event', and 'qualified gaming entity' to clarify regulatory boundaries.

Amended the definition of 'gambling' and 'contest of chance' in the criminal code to explicitly exclude legal sports wagering and fantasy sports contests from gambling prohibitions.

REQUIREMENT

Implemented mandatory criminal history background checks for all license applicants and persons with control over the business, with fingerprints required for the FBI's national criminal history background check system.

Created a voluntary exclusion program allowing individuals to self-exclude from sports wagering, with operators required to maintain confidential lists of excluded individuals and cease marketing efforts to them.

Required sports wagering operators to employ monitoring systems to detect suspicious activity, report violations to the department, and conspicuously display the 1-800-GAMBLER helpline in all advertising.

ENFORCEMENT

Established civil penalties up to $10,000 per violation for unauthorized sports wagering activities and criminal penalties ranging from misdemeanor to class B felony for unlicensed operations with repeat offenses.

TIMELINE

Set a universal start date for sports wagering operations no later than 180 days after the Act's effective date, with a temporary license option available for three years or until final license determination.

HB1308_HD3 → HB1308_SD1 · 7 edits

MODERATE

This bill transforms Hawaii's sports wagering framework from a proposed draft into a finalized Senate version (SD1) with substantive policy additions. The most significant change is the inclusion of a comprehensive criminal history record check system for all applicants and licensees, expanded definitions to include e-sports and fantasy sports, and the establishment of a Problem Gambling Prevention and Treatment Special Fund. The bill also adds detailed operational requirements for sports wagering operators, including monitoring systems for suspicious activity and a voluntary self-exclusion program for problem gamblers.

Scope change

The bill's scope expanded from basic sports wagering regulation to include e-sports and fantasy sports contests, while explicitly exempting licensed sports wagering from gambling prohibitions under state law.

REQUIREMENT

Added mandatory criminal history record checks with fingerprinting for all applicants and licensees, including checks against the FBI's national criminal history background check system.

Added requirements for sports wagering operators to prevent employee wagering on employer platforms and to conduct all wagering activities through approved mobile applications or digital platforms only.

DEFINITION

Added new definitions for e-sports, fantasy sports contests, and qualified gaming entities to clarify what activities are regulated and exempted.

FISCAL

Established a Problem Gambling Prevention and Treatment Special Fund to be administered by the Department of Health, funded by a percentage of sports wagering taxes.

ENFORCEMENT

Added requirements for sports wagering operators to employ monitoring systems for suspicious activity, maintain sufficient cash reserves, and conspicuously display problem gambling helpline information in advertising.

ELIGIBILITY

Added a voluntary self-exclusion program allowing individuals to exclude themselves from sports wagering, with operators required to honor these exclusions.

TIMELINE

Changed the effective date from July 1, 2025 (in the original draft) to July 1, 3000, likely as a placeholder for future legislative action.

HB1308_HD2 → HB1308_HD3 · 11 edits

MAJOR

This bill introduces comprehensive sports wagering regulation in Hawaii by creating a new chapter that establishes licensing requirements, defines key terms, and sets up a tax system. It also amends existing gambling laws to exclude legal sports wagering from criminal definitions and expands criminal history background check requirements to include sports wagering applicants.

Scope change

Expands state regulatory authority to include sports wagering as a legal business activity, previously not addressed in Hawaii law.

SCOPE

Creates a new chapter establishing sports wagering as a lawful business activity regulated by the Department of Commerce and Consumer Affairs.

DEFINITION

Defines key terms including sports wagering, wagering events, sports wagering operators, suppliers, and various types of sports events (professional, collegiate, amateur, youth).

Amends gambling and contest of chance definitions to explicitly exclude legal sports wagering and fantasy sports contests from criminal definitions.

ELIGIBILITY

Requires sports wagering operators to be qualified gaming entities operating in at least three U.S. jurisdictions, and mandates criminal history background checks for applicants and controlling persons.

REQUIREMENT

Establishes licensing requirements for both sports wagering operators and suppliers, including application procedures, fees, and compliance with house rules.

Requires sports wagering operators to implement monitoring systems for suspicious activity, maintain sufficient cash reserves, and display responsible gambling helpline information.

Establishes a voluntary self-exclusion program allowing individuals to request exclusion from sports wagering.

FISCAL

Creates a problem gambling prevention and treatment special fund funded by a percentage of sports wagering taxes for counseling, treatment programs, and education.

ENFORCEMENT

Establishes civil penalties for violations and criminal penalties for unlicensed sports wagering, with fines and potential felony charges for repeat offenders.

TIMELINE

Sets a universal start date for sports wagering operations no later than 180 days after the Act's effective date, with temporary licenses available for qualified entities.

TECHNICAL

Extends criminal history background check requirements to include sports wagering applicants and controlling persons in addition to existing categories.

HB1308_HD1 → HB1308_HD2 · 9 edits

MAJOR

This bill establishes a comprehensive legal framework for sports wagering in Hawaii by creating new definitions, licensing requirements, and tax provisions. It authorizes the Department of Commerce and Consumer Affairs to regulate sports wagering through mobile applications and digital platforms, while explicitly excluding fantasy sports contests from gambling laws. The legislation also creates a special fund for problem gambling prevention and treatment.

Scope change

The bill significantly expands the scope of legal gambling activities in Hawaii by adding sports wagering as a permitted activity, while simultaneously narrowing the definition of gambling to exclude sports wagering and fantasy sports contests from criminal penalties.

SCOPE

Sports wagering is now a lawful activity in Hawaii when conducted through approved mobile applications or digital platforms under departmental regulation.

DEFINITION

New definitions were created for key terms including 'sports wagering,' 'sports wagering operator,' 'sports wagering supplier,' 'wagering event,' and various types of sports events (professional, collegiate, amateur, youth).

Sections 237-13 and 712-1220 were amended to explicitly exclude sports wagering and fantasy sports contests from gambling definitions and tax classifications.

ELIGIBILITY

Only qualified gaming entities that already operate sports wagering in at least three U.S. jurisdictions are eligible to apply for Hawaii sports wagering operator licenses.

REQUIREMENT

New licensing requirements include criminal background checks, proof of system testing and certification, and mandatory monitoring systems to detect suspicious betting activity.

A voluntary exclusion program was created allowing individuals to request exclusion from sports wagering, with operators required to honor these requests.

FISCAL

A ten percent tax on adjusted gross sports wagering receipts is imposed, with a portion deposited into a special fund for problem gambling prevention and treatment services.

ENFORCEMENT

New civil and criminal penalties were established for unlicensed sports wagering, with fines and potential felony charges for repeat offenders.

TIMELINE

The bill includes a placeholder effective date of July 1, 3000, which appears to be an error that needs correction to a realistic date.

HB1308 → HB1308_HD1 · 9 edits

MAJOR

This bill establishes a comprehensive sports wagering regulatory framework in Hawaii, creating new licensing requirements for operators and suppliers, defining what constitutes legal sports wagering versus gambling, and setting up a special fund to address problem gambling. The legislation clarifies that sports wagering is legal under specific conditions while fantasy sports contests are excluded from gambling definitions.

Scope change

Expands state regulatory authority to include sports wagering operations through digital platforms, establishing the Department of Commerce and Consumer Affairs as the licensing authority.

DEFINITION

New definitions for 'sports wagering', 'sports wagering operator', 'sports wagering supplier', and various related terms to establish regulatory clarity.

Updates the Department definition from 'department of business, economic development, and tourism' to 'department of commerce and consumer affairs'.

ELIGIBILITY

Only qualified gaming entities (those licensed in at least three other US jurisdictions) may apply for sports wagering operator licenses in Hawaii.

REQUIREMENT

Mandatory criminal background checks for applicants and licensees, including fingerprinting through the FBI's national criminal history background check system.

Requires sports wagering operators to implement monitoring systems for suspicious activity, maintain sufficient cash reserves, and display responsible gaming helpline information in all advertising.

FISCAL

Establishes a problem gambling prevention and treatment special fund with 2% of collected taxes deposited into it for counseling and prevention programs.

ENFORCEMENT

Creates civil penalties up to $10,000 per violation for unlicensed sports wagering, with escalating penalties for repeat offenses including potential imprisonment.

TIMELINE

Sets a universal start date for sports wagering operations no later than 180 days after the Act's effective date, with a placeholder effective date of July 1, 3000.

SCOPE

Explicitly excludes fantasy sports contests from gambling definitions and allows sports wagering agreements with other jurisdictions to accept wagers from individuals outside Hawaii.

Floor votes

How they voted

This bill passed the Senate by voice vote (no roll call recorded).

Full legislative history

Actions timeline

Total actions

Key actions

Committee

Amendments

Apr 24, 2025

Lower · Passed

Bill scheduled for Conference Committee Meeting on Friday, 04-25-25 12:30PM in conference room 411.

lower

Apr 10, 2025

Amended

House disagrees with Senate amendment (s).

lower

Apr 8, 2025

Introduced

Returned from Senate (Sen. Com. No. 758) in amended form (SD 2).

lower

Apr 8, 2025

Upper · Passed

Report Adopted; Passed Third Reading, as amended (SD 2). Ayes, 15; Aye(s) with reservations: Senator(s) Aquino, Chang, Kim, Richards. Noes, 10 (Senator(s) DeCorte, Elefante, Fevella, Fukunaga, Gabbard, Ihara, Inouye, Kidani, Moriwaki, Rhoads). Excused, 0 (none). Transmitted to House.

upper

Apr 2, 2025

Upper · Passed

The committee(s) on WAM recommend(s) that the measure be PASSED, WITH AMENDMENTS. The votes in WAM were as follows: 11 Aye(s): Senator(s) Dela Cruz, DeCoite, Hashimoto, Kanuha, Lee, C., Wakai, Fevella; Aye(s) with reservations: Senator(s) Aquino, Elefante, Kidani, Kim ; 2 No(es): Senator(s) Moriwaki, Inouye; and 0 Excused: none.

upper

Mar 27, 2025

Upper · Passed

The committee(s) on WAM will hold a public decision making on 04-02-25 10:01AM; Conference Room 211 & Videoconference.

upper

Mar 21, 2025

Committee

Reported from EDT/CPN (Stand. Com. Rep. No. 1328) with recommendation of passage on Second Reading, as amended (SD 1) and referral to WAM.

upper

Mar 13, 2025

Upper · Passed

The committee(s) on CPN recommend(s) that the measure be PASSED, WITH AMENDMENTS. The votes in CPN were as follows: 4 Aye(s): Senator(s) Keohokalole, Awa; Aye(s) with reservations: Senator(s) Fukunaga, Richards ; 0 No(es): none; and 1 Excused: Senator(s) McKelvey.

upper

Mar 13, 2025

Upper · Passed

The committee(s) on EDT recommend(s) that the measure be PASSED, WITH AMENDMENTS. The votes in EDT were as follows: 5 Aye(s): Senator(s) DeCoite, Wakai, Awa; Aye(s) with reservations: Senator(s) Fukunaga, Kim ; 0 No(es): none; and 0 Excused: none.

upper

Mar 10, 2025

Upper · Passed

The committee(s) on EDT/CPN has scheduled a public hearing on 03-13-25 1:02PM; Conference Room 229 & Videoconference.

upper

Mar 7, 2025

Committee

Re-Referred to EDT/CPN, WAM.

upper

Mar 7, 2025

Upper · Passed

The committee(s) on EDT deleted the measure from the public hearing scheduled on 03-11-25 1:00PM; CR 229 & Videoconference.

upper

Mar 6, 2025

Upper · Passed

The committee(s) on EDT has scheduled a public hearing on 03-11-25 1:00PM; Conference Room 229 & Videoconference.

upper

Mar 6, 2025

Committee

Referred to EDT, WAM.

upper

Mar 6, 2025

Introduced

Received from House (Hse. Com. No. 355).

upper

Mar 4, 2025

Lower · Passed

Passed Third Reading as amended in HD 3 with Representative(s) Chun, Hussey, Lamosao voting aye with reservations; Representative(s) Alcos, Belatti, Garcia, Garrett, Grandinetti, Iwamoto, Marten, Matayoshi, Matsumoto, Muraoka, Perruso, Reyes Oda, Shimizu, Takayama, Templo voting no (15) and Representative(s) Pierick, Ward excused (2). Transmitted to Senate.

lower

Feb 24, 2025

Lower · Passed

The committee on FIN recommend that the measure be PASSED, WITH AMENDMENTS. The votes were as follows: 12 Ayes: Representative(s) Yamashita, Takenouchi, Holt, Kitagawa, Lee, M., Morikawa; Ayes with reservations: Representative(s) Hussey, Keohokapu-Lee Loy, Kusch, Lamosao, Miyake, Templo; 3 Noes: Representative(s) Grandinetti, Alcos, Reyes Oda; and 1 Excused: Representative(s) Ward.

lower

Feb 14, 2025

Committee

Report adopted; referred to the committee(s) on FIN as amended in HD 2 with Representative(s) Lamosao, Matsumoto, Tam voting aye with reservations; Representative(s) Alcos, Belatti, Garcia, Grandinetti, Kapela, Marten, Muraoka, Perruso, Pierick, Reyes Oda, Shimizu, Takayama voting no (12) and Representative(s) Cochran, Matayoshi, Poepoe, Ward excused (4).

lower

Feb 14, 2025

Committee

Reported from JHA (Stand. Com. Rep. No. 791) as amended in HD 2, recommending referral to FIN.

lower

Feb 12, 2025

Lower · Passed

The committee on JHA recommend that the measure be PASSED, WITH AMENDMENTS. The votes were as follows: 6 Ayes: Representative(s) Tarnas, Poepoe, Kahaloa, Todd; Ayes with reservations: Representative(s) Belatti, Hashem; 4 Noes: Representative(s) Perruso, Takayama, Garcia, Shimizu; and 1 Excused: Representative(s) Cochran.

lower

Feb 5, 2025

Committee

Reported from ECD (Stand. Com. Rep. No. 169) as amended in HD 1, recommending passage on Second Reading and referral to JHA.

lower

Jan 31, 2025

Lower · Passed

The committee on ECD recommend that the measure be PASSED, WITH AMENDMENTS. The votes were as follows: 6 Ayes: Representative(s) Ilagan, Hussey, Holt, Tam, Todd; Ayes with reservations: Representative(s) Matsumoto; Noes: none; and 1 Excused: Representative(s) Templo.

lower

Jan 27, 2025

Committee

Referred to ECD, JHA, FIN, referral sheet 4

lower

Jan 23, 2025

Introduced

Introduced and Pass First Reading.

lower

Jan 22, 2025

Introduced

Pending introduction.

lower

3 primary · 0 co-sponsors