STAND. COM. REP. NO. 1167

Honolulu, Hawaii

, 2025

RE: H.B. No. 1308

H.D. 3

Honorable Nadine K. Nakamura

Speaker, House of Representatives

Thirty-Third State Legislature

Regular Session of 2025

State of Hawaii

Madame:

Your Committee on Finance, to which was referred H.B. No. 1308, H.D. 2, entitled:

"A BILL FOR AN ACT RELATING TO SPORTS WAGERING,"

begs leave to report as follows:

The purpose of this measure is to:

(1) Allow for the regulation of sports wagering by the Department of Commerce and Consumer Affairs;

(2) Establish licensing requirements for sports wagering operators and sports wagering suppliers; and

(3) Specify that legal sports wagering and fantasy sports contests shall not be considered contests of chance or gambling.

Your Committee received testimony in support of this measure from DraftKings Inc.; BetMGM; Sports Betting Alliance; Iron Workers Stabilization Fund; and six individuals. Your Committee received testimony in opposition to this measure from the Department of Commerce and Consumer Affairs; Department of the Attorney General; Department of the Prosecuting Attorney of the City and County of Honolulu; Boyd Gaming; Hawaii Family Forum; Stop Predatory Gambling; Litt Law, LLC; HI Good Neighbor; Hawaiian Islands Republican Women; and numerous individuals. Your Committee received comments on this measure from the Department of Budget and Finance and Department of Taxation.

Your Committee has amended this measure by:

(1) Changing the sports wagering operator license fee to an unspecified amount;

(2) Changing the sports wagering supplier license fee to an unspecified amount;

(3) Changing the general excise tax rate on licensed sports wagering to an unspecified percentage; and

(4) Making technical, nonsubstantive amendments for the purposes of clarity, consistency, and style.

As affirmed by the record of votes of the members of your Committee on Finance that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 1308, H.D. 2, as amended herein, and recommends that it pass Third Reading in the form attached hereto as H.B. No. 1308, H.D. 3.

Respectfully submitted on behalf of the members of the Committee on Finance,

____________________________

KYLE T. YAMASHITA, Chair