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At least two state lawmakers are anteing up for what in recent years has consistently been a losing bet: legalizing commercial gambling in Hawaii.
Reps. John Mizuno and Daniel Holt on Monday touted a plan to introduce a bill that would permit only two types of gambling, poker and sports betting, at one establishment on Oahu not at a hotel, under a state license regulated by a commission.
The two lawmakers said the motivation for their proposal is partly to raise money for the state, including the Department of Hawaiian Home Lands, and to combat illegal game rooms that include some in the communities they represent in Honolulu.
”This is a very responsible proposition,” Holt (D, Chinatown-Iwilei-Sand Island) said at a news conference in a House of Representatives conference room at the state Capitol announcing the plan. “We’re taking an industry that is currently being unregulated and putting it into regulation and benefiting our communities at the same time.”
Holt, chair of the House Economic Development Committee, estimated there are 70 to 100 illegal game rooms in operation on Oahu.
Taxes and fees from a legalized poker room and sports betting hall, if the measure as written becomes law, would partly be directed to crime prevention, DHHL, homelessness prevention and gambling addiction mitigation.
Mizuno, a longtime backer of Hawaii gambling bills that have failed at the Legislature for close to a decade, gives better odds to the 96-page measure he drafted with Holt’s help.
“It’s a benevolent purpose,” said Mizuno (D, Kamehameha Heights-Kalihi Valley).
Hawaii and Utah remain the only two states that prohibit any legal gambling where operators make money off participants.
Opposition to legalizing various forms of gambling in Hawaii — including a lottery, casinos, offshore shipboard gaming and slot machines at airports — have come in part from law enforcement authorities and community members who say legal commercial gambling gives rise to more crime and other social ills.
“In order for the state to gain income, that means families need to lose something,” Francine Su’a-Filo, a Church of Jesus Christ of Latter Day Saints representative, said in written testimony on a gambling bill two years ago.
The Honolulu Police Department opposed another 2021 gambling bill, saying in written testimony, “Numerous studies have confirmed that gambling causes problems such as bankruptcy, theft, embezzlement, suicide, child abuse and neglect, divorce, incarceration, and homelessness.”
Eric Ford, an industry proponent who formed Rise Hawaii Gaming LLC in August, participated in the news conference and said Hawaii residents already lose $400 million to $800 million a year on gaming.
“It’s mind-boggling,” he said. “If we could keep 10% of that locally, that would keep the economy going.”
Ford estimated that running 20 poker tables could generate $8 million to $12 million a year for the state, while a sports betting operation after five years could add another roughly $40 million.
“What we are proposing for this new bill is something that’s never been done in the state of Hawaii,” Ford said. “We are not proposing a casino. In Hawaii when you say the word ‘casino,’ everybody runs. It’s like saying ‘fire’ in a theater. This is not a casino … this is just a regular poker room/sports betting parlor.”
A draft of the planned bill proposes a limit of 30 poker tables and allowing the facility operator to expand on-premises sports book wagers to online bets after three years.
The bill draft also proposes a $25 entry fee to the envisioned facility and would require that customers provide proof that they will stay or have stayed at a transient accommodation, such as a hotel, on Oahu within 24 hours of admission.
It remains to be seen whether the bill gains any traction after the Legislature convenes Jan. 18. In the past, many gambling bills have been introduced but were not taken up by legislative committees and therefore died without a hearing.
Two identical bills introduced in 2021 to allow a casino on DHHL land but not west of Ko Olina received initial hearings, respectively, by a House committee and a Senate committee — both of which deferred action on the measures.
In 2020 two bills proposing a lottery didn’t even receive a hearing.
Mizuno is hopeful that more lawmakers sign on as co-sponsors to the draft bill and that it advances after the legislative session starts.
“With Hawaii residents dropping a billion dollars to Las Vegas, Nevada, every year, I think a sports and card gaming bill warrants at least a discussion,” he said in a written statement. “If crime is associated with gambling, why is gaming legal in 48 states and why are so many Hawaii residents going to Las Vegas, with many taking multiple trips? The people I know who enjoy trips to Las Vegas are mostly kupuna (seniors), not criminals. I feel it is important to discuss options to keep local money in the local economy.”
GAMBLING AT THE LEGISLATURE
State lawmakers have introduced many bills related to gambling in past years that have died at the Legislature. Purposes of some of the bills introduced by year are listed below.
2013
>> Establish a gambling task force to perform a comprehensive social and financial analysis of various gambling forms and their impacts to help lawmakers make informed policy decisions.
>> Allow internet gambling in Hawaii under an internet lottery and gaming corporation that allocates proceeds for public school and University of Hawaii system capital improvements, scholarships and educational loan repayments for medical students who practice in Hawaii for 10 years, and support for the family practice rural residency program, watershed protection and reduction and prevention of problem gambling.
2014
>> Allow shipboard gaming in state waters.
>> Grant a 20-year license for one stand-alone casino in Waikiki not in a hotel, and establish a gaming control commission along with a 15% wagering tax and a state gaming fund and compulsive-gambler program.
2015
>> Allow slot machines at state airports for departing passengers as an amusement concession that generates revenue for airport operations.
2016
>> Authorize and regulate fantasy contests, and clarify that such contests shall not be considered gambling or games of chance.
>> Authorize one state lottery operation “to serve community betterment purposes” including addressing homelessness, health care issues and funding public education needs in technology, professional development and heat abatement.
2017
>> Establish regulatory framework for licensed shipboard gaming in state waters.
>> Form a commission to analyze the possibility of gaming in Hawaii.
2018
>> Create an internet lottery and gaming corporation for the purpose of conducting internet gambling in Hawaii.
>> Establish an online fantasy sports contest registration and monitoring program, and exempt registered online fantasy sports contests from state gambling laws.
2019
>> Create a lottery and gaming corporation for the purpose of conducting gambling in Hawaii.
2020
>> Establish a task force to assess feasibility of authorizing controlled legalized gambling in the state, including offshore gambling and a state lottery system, to fund teacher and police officer pay raises.
2021
>> Allow the state Department of Hawaiian Home Lands to build a casino resort on agency land excluding areas west of Ko Olina.
>> Allow one Las Vegas-style casino, perhaps on top of the Hawai‘i Convention Center in Waikiki.
2022
>> Establish a state lottery that would put money into a pest inspection, quarantine and eradication fund.
>> Allow online fantasy sports contests.
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