STAND. COM. REP. NO. 263-26

Honolulu, Hawaii

, 2026

RE: H.B. No. 2570

H.D. 1

Honorable Nadine K. Nakamura

Speaker, House of Representatives

Thirty-Third State Legislature

Regular Session of 2026

State of Hawaii

Madame:

Your Committee on Economic Development & Technology, to which was referred H.B. No. 2570 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 Business, Economic Development, and Tourism;

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

(3) Levy a general excise tax on sports wagering operator licenses;

(4) Establish the Problem Gambling Prevention and Treatment Special Fund to be administered and expended by the Department of Health;

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

(6) Authorize the Department of Business, Economic Development, and Tourism to perform criminal history record checks on applicants and licensees relating to sports wagering.

Your Committee received testimony in support of this measure from FanDuel; Hawaii State AFL-CIO; DraftKings; Sports Betting Alliance; BetMGM; Hawaii Government Employees Association, AFSCME Local 152, AFL-CIO; and five individuals. Your Committee received testimony in opposition to this measure from the Department of the Attorney General; Department of Commerce and Consumer Affairs; Hawaii State Commission on the Status of Women; Department of the Prosecuting Attorney of the City and County of Honolulu; Honolulu Police Department; Hawaii Family Forum; Nation of Hawaiʻi; The Institute for Human Services, Inc.; Boyd Gaming; Stop Predatory Gambling; and numerous individuals. Your Committee received comments on this measure from the Department of Taxation; Department of Business, Economic Development, and Tourism; Department of Health; Office of Information Practices; Tax Foundation of Hawaii; and National Council on Problem Gambling.

Your Committee finds that an estimated 276,000 people in Hawaii are betting over $669,000,000 in illegal wagers each year. Your Committee further finds that thirty-nine states have legalized sports betting and that Hawaii's failure to do so represents a loss of millions of dollars in tax revenue each year. This measure seeks to spur economic growth by authorizing sports wagering.

Your Committee has amended this measure by:

(1) Inserting language referring to this measure as the "Representative Daniel Holt Act";

(2) Changing the effective date to July 1, 3000, to encourage further discussion; and

(3) 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 Economic Development & Technology that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 2570, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 2570, H.D. 1, and be referred to your Committees on Judiciary & Hawaiian Affairs and Consumer Protection & Commerce.

Respectfully submitted on behalf of the members of the Committee on Economic Development & Technology,

____________________________

GREGGOR ILAGAN, Chair