Relating To Online Fantasy Sports.
If enacted, SB1108 will amend the Hawaii Revised Statutes to include specific provisions for online fantasy sports contests, thereby exempting registered contests from existing gambling laws. The bill mandates the creation of a registration and monitoring program under the Department of the Attorney General, ensuring operators comply with state regulations. This approach aims to provide a legal avenue for the burgeoning fantasy sports industry in Hawaii, thereby potentially increasing state revenue through tourism and gaming.
SB1108 aims to establish a regulatory framework for online fantasy sports contests in Hawaii, permitting residents and visitors to legally participate in such games. Currently, although no explicit law prohibits these contests, they have been deemed illegal based on a 2016 attorney general's opinion categorizing them as gambling. This bill seeks to counter that opinion by defining online fantasy sports contests as games of skill, thereby distinguishing them from traditional gambling activities that are governed under state law.
Notable points of contention surrounding SB1108 include the arguments about whether online fantasy sports should be classified as games of skill or chance. Proponents of the bill argue for its necessity in providing legal clarity and supporting the local economy by attracting visitors who partake in fantasy sports. Critics, on the other hand, may express concerns about the implications for gambling regulation in the state and the potential for increasing gambling addiction, particularly among minors.
The bill lays out administrative obligations for operators of online fantasy sports platforms, including requirements for annual reporting, age verification, and consumer protections related to online gambling. These measures will help ensure player safety and uphold the integrity of the contests, aiming to make the online gaming experience fair and transparent.