A raft of gambling-related bills have been introduced in the state Legislature and have passed first readings on their respective chamber’s floors.
All the bills have received committee referrals, although none have hearings scheduled nor received written testimony as of Monday.
Hawaii is one of only two states that hasn’t legalized any form of commercial gambling. Utah is the other.
House Bill 918 seeks to authorize a 10-year license for a single “poker and sportsbook gaming facility” that would allow admission “for individuals 21 years of age or older who register to stay at a hotel on Oahu and pay an annual fee.”
The description of where the casino would be doesn’t mention Waikiki but is worded in a way that only fits that area of Honolulu.
The 98-page measure, introduced by Reps. John Mizuno and Daniel Holt, both Oahu Democrats, would also establish a Hawaii gaming control commission, impose a wagering tax on gross receipts, create a state gaming fund and a program aimed at treating compulsive gamblers.
In past sessions, Mizuno has introduced bills that, if passed, would have authorized building a Waikiki casino.
Four bills — two related to sports wagering and another pair relating to online fantasy sports — also are under consideration.
Senate Bill 1109 and HB 344 would allow for the regulation of sports wagering by the Department of Business, Economic Development and Tourism. The measures would establish licensing requirements for sports wagering operators and suppliers, and would specify that sports wagering won’t be considered a game of chance or gambling.
While the bills are similar, they aren’t companion measures.
Mizuno introduced the House bill “at the request of another party,” while the Senate legislation was introduced by Maui Sens. Gilbert Keith-Agaran and Angus McKelvey, both Democrats, with Puna Sen. Joy San Buenaventura, a Democrat, signed on as a supporter.
Another pair of Senate bills, SB 1108 and SB 1146, relate to online fantasy sports contests. Both would establish an online fantasy sports contest registration program to be administered by the state attorney general, and would exempt registered online fantasy sports betting contests from state gambling laws. The latter bill also would create an online fantasy sports contests tax on the gross revenue of registrants and create a special fund to benefit public schools and the construction and maintenance of county roads.
Keith-Agaran and McKelvey were co-introducers of both measures, as were Oahu Democrat Sens. Jarrett Keohokalole for SB 1106 and Stanley Chang for SB 1146. San Buenaventura and Oahu Sen. Maile Shimabukuro signed on as supporters of the latter initiative.
Senate Bill 1107, also co-introduced by Keith-Agaran and McKelvey, would establish the Hawaii Lottery and Gaming Corporation for the purpose of conducting and regulating wagering and gaming in Hawaii. It also would establish a Lottery and Gaming Special Fund and allocate certain percentages from the fund to various community betterment purposes.
There also were several anti-gambling measures introduced this session.
A pair of companion bills, HB 375 and SB 591, would make the operation of an illegal gambling business in the state a Class C felony punishable by up to five years imprisonment.
There have been reported estimates of up to 7,000 illegal gambling rooms on Oahu alone. The House bill, introduced by Speaker Scott Saiki, has been referred to the Judiciary and Hawaiian Affairs Committee. The Senate version, introduced by Oahu Democratic Sens. Sharon Moriwaki, Henry Aquino and Chang, with fellow Oahu Democrats Donovan Dela Cruz, Les Ihara and Michelle Kidani signed on as supporters, has been referred to the Judiciary Committee.
HB 459, introduced by Oahu Republican Reps. Gene Ward and Diamond Garcia, would make the possession of a gambling device larger than a cubic foot a misdemeanor.
SB 258, introduced by Oahu Sen. Kurt Fevella, the chamber’s only GOP member, and Aquino, would create an intergovernmental task force to eradicate illegal gambling and drug activities and establish community safe zones across the state.
Perhaps the most unusual measure is aimed at Hawaii gambling dollars spent in Nevada.
SB 935, introduced by Chang, would ban advertising by Nevada hotels, resorts or other recreational services that promote casinos or other gambling in print, online or by broadcast media in Hawaii. It also would levy a tax of 30% of the gross income earned by anyone in Hawaii who arranges, promotes or sells vacation packages or recreational services that provide such gambling.
According to the measure, Nevada-based Boyd Gaming made $600 million from Hawaii residents in 2011, and its 2021 annual report said Hawaii residents accounted to “more than half of room nights sold at The California, the Fremont and Main Street Station” in Las Vegas.
The measure also quoted an unnamed lobbyist for gambling interests, who reportedly told the House Committee on Tourism in 2012 that the prohibition of gambling “costs Hawaii $1 billion each year in outgoing dollars and returns none.”
Email John Burnett at jburnett@hawaiitribune-herald.com.
