Proposed Tax Framework for Mobile Sports Betting in Hawaii
On April 2nd, advocates for legalized mobile sports betting in Hawaii celebrated a significant milestone as the Senate Ways and Means Committee voted in favor of HB 1308, advancing it to the full Senate for further deliberation.
With an 11-2 vote, the bill was received positively, though four senators expressed reservations about its implications. This committee’s approval marks a crucial step, being the final senate committee to endorse the legislation after similar endorsements from the Economic Development and Tourism and the Commerce and Consumer Protection committees.
However, the proposal faces staunch opposition from various prominent organizations within Hawaii, including the state attorney general’s office. Their written testimony emphasized concerns surrounding problem gambling and potential regulatory loopholes created by changes to fantasy sports betting, warning of possible unregulated gambling activities.
Clarifying Financial Provisions
Initially, HB 1308 progressed through the house without formal licensing fees and tax rates, but these details became critical as it moved to the next phase. The Ways and Means Committee addressed these omissions during their session, proposing a licensing fee set at $250,000 for an initial application, alongside a $10,000 fee for either first-time suppliers or renewals.
The bill would implement a tax rate of 10% on adjusted gross revenue (AGR), a rate anticipated to rank among the lowest in the nation where commercial wagering is sanctioned. Notably, 7% of the tax income is earmarked for a newly established fund aimed at preventing and treating problem gambling, while another 7% is designated for educational initiatives within the state.
For a comprehensive overview of this legislation and its potential impact, refer to the full article linked here.
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