Hawaii Legislation on Sports Betting Will Not Cover Experienced Firms Such as FanDuel and DraftKings

By Matt Speakman,
Betting Expert at online-gambling.com

Matt Speakman Betting Expert at online-gambling.com

A die-hard fan of the Patriots, Matt Speakman is an expert on everything related to sports betting and DFS sites. Over the years, he has proven a valuable asset for our team at online-gambling.com. You can find Speakman's professional tips and tricks in any of his many articles on the website.

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Last updated: January 16, 2023

Hawaii legislation seeking to make onsite sports betting and poker games legal on the island of Oahu. They would also ban industry leaders such as BetMGM, FanDuel and DraftKings from taking part. Oahu, which is the third largest of the Islands in Hawaiian, has about a million residents, making it the island with highest number of residents. Oahu, which is called “The Gathering Place”, will soon permit poker and sports betting, should two state lawmakers get their way.

Recently, two state lawmakers, John Mizuno, House Vice Speaker (D-District 28) and Daniel Holt, state Rep. (D-District 29), launched their sports gaming bill in Honolulu, the state capital of Hawaii. According to the two lawmakers, the statute would ensure that the approximated $1 billion in gambling revenue that Hawaiians gamble annually in Las Vegas would be kept inside the island state. Under current state law, gambling is illegal in Hawaii. Mizuno mentioned that Hawaii residents gambling $1 billion in Las Vegas yearly, should warrant a discussion on a sports and card gaming bill.

“If crime is associated with gambling, why is gaming legal in 48 states and why are so many Hawaii residents going to Las Vegas? The people I know who enjoy trips to Las Vegas are mostly kupuna (grandparents, elders), not criminals. I feel it is important to discuss options to keep local money in the local economy” – said Mizuno. It’s estimated that more than 500,000 Hawaiians visit Las Vegas yearly, with many making several trips to Southern Nevada every year.

Details of the Bill

Daniel Holt and John Mizuno intend to give room for small gaming spaces to join the market of Oahu. According to them, the facilities would not be casinos. In terms of size, they will be more akin to 24/7 fitness clubs. Each of those gaming rooms cannot exceed 25,000 square feet. Between ten and thirty poker tables can be housed in the locations.

For the first two years of operation of each licensed facility, sports betting would be restricted to in-person betting. An online sportsbook component would be allowed after two years if the permit has complied with the gaming regulations of the state and is considered fit to increase their operations.

The chances that the bill would be passed are slim, as the state lawmakers in Hawaii are known to for their rejection of every form of gambling due to high addiction rates in the state. However, Daniel Holt and John Mizuno argue that making limited gambling legal would have a significant negative effect on the many underground gambling hubs operating illegally throughout the state. Holt said that the those gambling venues are not regulated and frequently involve both prostitution and drugs.

No Need for Industry Leaders to Apply

The Sports Gaming Bill has a noteworthy catch: experienced firms such as FanDuel and DraftKings would not be allowed to get a gaming license in Hawaii. According to Mizuno and Holt, only long-term Hawaii residents and businesses would be eligible to apply for a gaming license.

John Mizuno said that they don’t want a mainland corporation entering and just collecting all the money. Currently, the legislation only allows entities based in Hawaii to request gaming privileges. Also, the key stakeholders in the industry must have lived in Hawaii for at least 35 years. The poker and sports betting statute also intends to promote social equity. People who have criminal records for running illegal gambling could still be eligible for a gaming concession.