The latest US state looking to introduce new legislation for online sports betting comes from Hawaii as lawmakers are reportedly considering legalizing options on the island – this comes as another in a big string of changes over the past two years that have seen sports betting and on rarer instances iGaming services grow across the US and to some great success to as many states have managed to post inspiring figures – so far 31 different states have made change for online sports betting, and Hawaii is one of the few that hasn’t made any change at all.
It sings alongside Utah that has outlawed all online gambling and betting, with some experts suggesting that the state could be losing out on up to $3 billion it aggregated tax revenues is just the first three quarters of the year, and as other states show the numbers that have been found it’s certainly something that’s believable to see. Hawaii does have something more unique however, mainland states may suffer the issue of players crossing state lines in order to use online apps and physical services in neighboring states which Hawaii doesn’t have the same problem as an island, but it has been outlined that it may see a large number of players illegally access US based sites in order to take part in this activity.
The mixed response for Hawaii comes at the tax rate – the suggestion is that sports betting could be subject to a 55% tax rate on any player winnings which is higher than many other states that have made the change, it follows other states like New York which had legalized online sports betting with a 50% tax rate and much higher than more modest states like Nevada at just 6.75% – whilst this may still encourage some Hawaii based players to use online services illegally in order to hold onto more winnings, it will still have the impact of keeping many players local and seeing licensed operators succeed too. There’s also plenty of time for change too, the legislation announcement is still very recent and there will no doubt be a discussion around the best way to approach this which could see the tax rate change in the future, it may not be likely but the possibility does exist, and the next question will be in which operators will be able to grow and emerge in the space – the good news for punters is that things are at least moving forward in the state, and legal online sports betting is close by, but online gambling through iGaming services may still be quite some time away.