HB 1973 - Sports Wagering Bill Summary

• Establishes a new regulatory framework for sports wagering in Hawaii under the Department of Business, Economic Development, and Tourism, allowing licensed operators to accept wagers via mobile applications and digital platforms.

• Creates two license types: mobile sports wagering operator licenses ($50,000 fee, 3-year term) limited to qualified gaming entities operating in at least 3 U.S. jurisdictions, and sports wagering supplier licenses ($5,000 fee, 3-year term) for providers of equipment and critical services like geolocation and identity verification.

• Imposes a 10% tax on adjusted gross sports wagering receipts (gross receipts minus winnings paid and federal excise taxes) from licensed operators.

• Restricts sports wagering to persons 18+ physically located in Hawaii, requires background checks for licensees and persons with control, and prohibits employees from wagering on their employer's platform.

• Exempts authorized sports wagering activities from Hawaii's gambling statutes and allows the department to enter into agreements with other jurisdictions to accept wagers from persons located outside the state; effective July 1, 2022.