Legislature invited to place bet on gambling over taxes

Gov. Neil Abercrombie is telling lawmakers he is willing to consider gambling next year.

At the same time, he is again considering a state income tax on pensions and taxing soft drinks with sugar. Some legislators think it will come down to a decision of either raising taxes or legalizing gambling.

Right now the governor is quietly letting it be known that he will "look favorably" on legislation to legalize casino gambling in Hawaii.

Senate President Shan Tsutsui said Abercrombie told him he wants action on gambling next year.

"He tells me he is going to do something," Tsutsui said.

"I said it would be better if we put a commission together to discuss it and hold hearings, but he said, ‘We can take care of this right away.’"

Also, while on Maui earlier this year, Abercrombie told Maui Democratic Rep. Joe Souki that he wouldn’t oppose a gaming bill.

The former House speaker, who every year introduces and supports gambling bills, said Abercrombie was clear in his support.

"He told me he favors looking at gambling. He told me he would look favorably at it," Souki said.

That initial encouragement should help move the bill, Souki speculated.

"If the governor wants it and pushes it, then it becomes a choice: Do we want gambling or do we want to raise taxes?" Souki said.

Abercrombie’s spokeswoman, Donalyn Dela Cruz, confirmed that Abercrombie is willing to consider gambling, but cautioned that he doesn’t intend to propose it.

"The governor is considering gambling as an option. He would consider gambling if it passed the Legislature, but in terms of it coming from the administration, that is not going to happen," Dela Cruz said.

Souki thinks that Abercrombie understands that the state is likely to be running an unbalanced budget next year and will have to propose some way to bring state finances back in line.

"This would raise money for the state. We can raise money and not raise taxes," said Souki, who has also supported tax increases to fund transit, highway and recreation proposals.

Souki added that several of Abercrombie’s kitchen cabinet advisors such as lobbyist John Radcliffe and former legislator and superintendent of education Charles Toguchi have been pushing Abercrombie to support or endorse gambling legislation.

Hawaii has flirted in the past with legalized gambling. When Ben Cayetano was governor, he visited the Atlantis casino and hotel in the Bahamas and also said he would consider gambling. Critics argued that gambling would not help Hawaii’s economy, and the legislation failed to pass both chambers.

Gambling has been strongly opposed by Hawaii’s senior Sen. Daniel K. Inouye, although he supportsgambling in Native American jurisdictions.

In Hawaii, gambling would face opposition from police and religious organizations and also the Boyd Gaming Corp., which operates the California, Fremont and Main Street Station hotels in Las Vegas, which are popular with Hawaii residents.

Other lawmakers doubt that Abercrombie would win approval for any of his tax increase ideas next year.

"His sugar tax was not well-received last session," said Tsutsui. "This time it will be an uphill battle."

Tsutsui added that he didn’t think gambling had enough votes to pass the Senate right now, saying the issue needed study and public discussion.

So far, the gambling proposals have not been given much serious consideration by either House or Senate leadership, but if next year is a repeat of this year’s sagging economy, gambling will gain traction at the Capitol.

Richard Borreca writes on politics on Sundays, Tuesdays and Fridays. Reach him at rborreca@staradvertiser.com.