Bill > SB373

This bill seeks to legalize and regulate online fantasy sports contests in Hawaii by establishing a comprehensive framework for their operation. The legislation defines online fantasy sports contests as games of skill where participants use their knowledge of athletic events to create and manage virtual player rosters, and explicitly differentiates these contests from gambling activities. The bill creates a registration and monitoring program under the Department of the Attorney General, requiring operators to obtain a three-year registration and meet strict operational standards, such as preventing minors from participating, protecting player privacy, and ensuring fair play. Operators must implement safeguards like limiting player accounts, identifying highly experienced players, and providing responsible gaming resources. The bill imposes a tax on the gross revenues of registered fantasy sports platforms and establishes a special fund to direct proceeds toward Lahaina community recovery efforts. Importantly, the legislation exempts registered online fantasy sports contests from state gambling laws, based on research suggesting these contests are predominantly skill-based. The bill also appropriates funds to the Department of the Attorney General to develop and implement the registration and monitoring program, with the goal of creating a regulated, transparent environment for online fantasy sports in Hawaii.