The tax rate is set at 10% of the annual total income, with a certain proportion specifically allocated to address gambling issues and educational problems.
The Hawaii State Senate Fundraising Committee approved Bill HB 1308 and submitted it to the full Senate for deliberation, marking another step forward for supporters of the legalization of mobile sports betting in Hawaii.
The bill was passed with a vote of 11 to 2, although four state senators cast a "reserved affirmative vote." After being passed by the Economic Development and Tourism Committee and the Commerce and Consumer Protection Committee, the House Fundraising Committee was the third and final Senate committee required to pass the bill.
Despite ongoing opposition from well-known statewide organizations, the bill has entered the Senate for deliberation. This includes the State Attorney General's Office, which submitted written testimony indicating that gambling issues and changes in fantasy sports would lead to "unregulated and unlicensed gambling."
HB 1308 was passed by the state's lower house at the end of February, but did not include licensing fees and tax rates, as these were removed by amendment. The Fundraising Committee filled these gaps during the hearing, with an initial licensing fee of $250,000 and an initial or renewal supplier licensing fee of $10,000.
The 10% tax rate on adjusted total income, which was removed by the House amendment, was reintroduced. This would be one of the lowest commercial gambling tax rates in the United States. 7% of the tax revenue will be deposited into a special fund established by the bill for the prevention and treatment of gambling problems, and another 7% will be designated for "projects supporting education in the state."
