Committee Finally Sets Tax and Licensing Numbers
One reason HB 1308 has made it this far has been the lack of a tax rate for licensing fees. This has been a sticking point for past bills, so lawmakers removed it from HB 1308 to help focus on the other aspects. The bill sets the operator tax rate at 10% and an initial license fee of $250,000.
The Committee hopes the proposed tax rate and initial license fee will help the bill’s chances of getting a full Senate vote. An agreement over how the money is generated from the industry has been found, which helped lawmakers come up with both numbers.
Four Lawmakers Share Reservations Despite Support
As impressive as the 11-2 victory was, four lawmakers that voted favorably shared reservations. They believe the amendments to the bill create a solid proposal for a regulated sports betting industry, but fears over problem gambling remain. This could sway them to vote against the bill once it is put to a full Senate vote.
These lawmakers qualifying their support isn’t a good sign for HB 1308’s chances on the Senate floor. However, the bill's success shows that momentum for legalization is growing.
State May Soon Need Boost to Tax Revenue
With fears of a recession looming, Hawaii’s booming tourist industry may be in danger. Given the state’s distance from the continental US and high prices, few people can afford the trip. Since tourism is the state’s top industry, it could lead to a massive drop in revenue for Hawaii.
Desperation for a new source of revenue could result in some industry opponents changing their tune. While concerns over the impact on the population remain, a shift in the economy could soon outweigh them.
