During the Great Recession of 2007-2009, as chairman of the state House Finance Committee, I had to address a $1 billion budget shortfall. The 25th Legislature did so with some spending cuts, revenue adjustments, tapping special funds, defunding vacant positions and strategic use of federal funds. Gambling was an option, but we passed on the easy fix. Hawaii’s 33rd Legislature and our governor should do the same and not approve House Bill 1308.
In the age of smartphones, online sports gambling is the nation’s growing public health crisis. If HB 1308 becomes law, the floodgates of the most predatory form of gambling will swamp Hawaii’s society. It’s the Pandora’s box — a foul pestilence of false hope and devilish enslavement of our most vulnerable citizens. Its business model relies on 85% of its profits coming from just 5% of its gamblers. Our government should not partner with an industry that profits from losses of our own citizens. What would the late U.S. Sens. Dan Inouye or Dan Akaka say? Govs. William Quinn or John Burns?
Gambling ads — cloaked in the language of camaraderie and wholesome fun are aimed at young men ages 18-35 — and free promotions, bonuses and celebrity endorsements make the apps feel more like games than what they really are: sophisticated Ponzi schemes supercharged by AI algorithms to foster addiction and prompt credit card charges.
When sports commentators nonchalantly discuss point spreads, proposition bets and parlays during broadcasts, it blurs the line between watching the game and betting on it. Jim Leahey and Cindy Luis are rolling over in their graves.
Bet MGM, DraftKings, Fanatics and FanDuel will spend thousands of dollars on masquerading as benevolent corporations funding addiction centers to treat gambling addicts they created. Behind the glitz and 24-hour access lies the dangerous reality: online sports gambling means gambling addiction, bankruptcy, partner abuse and expansion of illegal gaming.
Before politicians commit to this gambit, a study should be commissioned to determine the number of problem gamblers, so we know its true costs. This is a no-brainer.
Supporters talk about money for health care, education, housing and seniors. They fail to mention the enormous human costs to be paid by Hawaii’s families. Astonishingly, HB 1308 may generate only $10-$15 million in new revenues based upon a give-away tax rate of 10% for four licensees. For context, this is less than one-tenth of 1% of our $10 billion general fund budget. Practically, a teeny tiny drop in the bucket. Assuredly, the House and Senate money chairs know of other options, and so does the governor.
There is something profoundly alarming about any political leader who would knowingly fund our state’s needs on the back of our most vulnerable citizens. To foresee addiction, bankruptcy, partner abuse and lives ruined — and see dollar signs — is Machiavellian.
Frankly, it is moral failure, unbecoming to any politician, whether Democrat or Republican, old or new.
If we cannot balance our budgets without preying on the weak and vulnerable, then we have lost our way as stewards of these islands and our fitness to serve should be challenged.
Former state Rep. Marcus R. Oshiro served as House Finance chair from 2007-2012, and as Hawaii Labor Relations Board chair from 2017-2024.
