Despite a "grounds-well" of opposition in Kaimuki, an arcade connected to Winner’z Zone, which was raided by police for illegal gambling machines, can begin serving liquor at its Waialae Avenue location soon, possibly by the end of next month.

WZ Entertainment Center, was granted a liquor license by the Honolulu Liquor Commission on Thursday, meaning it can operate a bar at its Waialae Avenue location, between 9th and 10th avenues.

It is the first time any of the arcades previously known as Winner’z Zone has been granted a liquor license. WZ Entertainment has been open in Kaimuki since at least early 2014 but is currently closed for renovation.

All the other Winner’z Zone arcades have closed. Police began raiding the Winner’z Zone arcades in 2012 and seizing dozens of gaming machines that authorities claim are illegal.

Several community groups opposed granting the business a liquor license because they feared it could bring unsavory characters to the neighborhood and increase crime.

Some detractors included the Kaimuki Neighborhood Board, the Kaimuki Business & Professional Association, the Kaimuki Jade apartment association and state Rep. Calvin Say.

In a letter to the commission, Say said Kaimuki is a family-oriented community with "ma and pa" businesses and that he would like to keep it that way.

"I do not feel comfortable with the record of the company or the potential for illegal … activity and the kind of clientele it might attract to the neighborhood if a liquor license were approved," he wrote.

After hearing testimony in opposition, the commission unanimously approved the application, but imposed several conditions, including a six-month probation and a three-month review. The commission banned minors from the establishment after 6 p.m. and required them to be accompanied by an adult at all other times.

In addition, the commission limited alcohol consumption to the front of the establishment before 6 p.m.

Kaimuki resident Karen Tsukiyama, who testified against the license, said she was glad that at least a probationary period was imposed.

"There is a strong concern," she said. "We really have to step up to the plate and start protecting our young ones and to preserve Kaimuki."

Ron Arnold, president of the Kaimuki Business & Professional Association, said before the commission’s hearing that the arcade’s gambling history "is a real concern for us," adding, "They maintain they’re new and improved, but we’re not convinced of that."

He was also concerned about the mingling of children and alcohol in the arcade, especially with three elementary schools nearby.

Arnold acknowledged that it was unusual for KBPA — a group that promotes businesses in Kaimuki — to oppose a business trying to get a liquor license, but he said the concern for protecting the community was stronger.

"We are for businesses, but we are for our community," he said. "We felt like this (liquor license) would detract from it."

In testimony to the commission, he said there was a "groundswell" of opposition against granting the liquor license with 22 nearby businesses signing a petition in opposition. One business owner, he said, had a brick thrown through his window, allegedly by WZ’s clientele.

But WZ Entertainment’s attorney, Keith Kiuchi, said the business, operating with a liquor license, will probably mesh well with the upscale restaurant-and-bar scene in Kaimuki.

"That neighborhood for (WZ Entertainment’s) concept probably works," he said.

He said WZ Entertainment changed the games from the cash payout at Winner’z Zone to redemption prizes and carefully selected games that are legal.

The establishment will have an adult atmosphere with games and prizes similar to Dave & Buster’s and high-quality food, he said.

WZ Entertainment co-owner April Whiting-Haraguchi, who previously owned a couple of Winner’z Zone arcades, said she was also concerned about the neighborhood and the safety of the children.

"If we have to hire security, we’ll do it," she said.

After the commission granted the license, some in Kaimuki said they were not concerned.

"That’s pretty cool," said Dakota Williams, 24, a Kapahulu resident who works in Kaimuki. "I would love to drink and play video games."