Hawaii Casino Proposal Dead in House, Alive in Senate

A bill in the Hawaii legislature that would have authorized a casino in Kapolei (l.) appears dead. But several other gaming bills, including one that creates a state lottery, are still alive in a state that currently allows no form of gaming at all.

Hawaii Casino Proposal Dead in House, Alive in Senate

Members of the Hawaii House have killed a measure that would have authorized a casino in Kapolei, though the proposal remains alive in the Senate.

Hawaii does not allow gaming in any form.

The Department of Hawaiian Home Lands (DHHL) proposed the bill as a way to pay for putting Native Hawaiians on homesteads. Without more revenue the department says it would take 180 to build the homes and infrastructure necessary to meet demands.

The bill was deferred until 2022. Leaders, included House Speaker Scott Saiki and Senate President Ron Kouchi, don’t support the bill.

Rep. Sean Quinlan, chairman of the House Economic Development Committee, criticized fellow lawmakers for not properly funding the DHHL. “Every two years we swear an oath on the state constitution and every two years we fail to follow up on that oath with the money Hawaiians are owed.”

DHHL Director William Aila praised his deputy, Tyler Iokepa Gomes and staff for their work on the proposal. “While the committee’s deferral of HB 359 was not an ideal outcome, we look forward to the future with hope,” he said.

The bill would have granted a 40-year gaming license for a casino resort on Kopolei, Oahu. The goal was to raise funds to put persons of 50 percent or more Hawaiian blood into homes. It would have done this by taxing gross gaming revenues at 45 percent.

Gomes had estimated such a casino would have generated about $30 million in revenue.

A separate bill, by Rep. John Mizuno, would grant a 10-year license for a casino without a hotel in Waikiki. It has been referred to two House committees.

Another bill would establish a lottery and gaming corporation and use proceeds to benefit schools and the university system.

In the Senate, Dru Kunuha, has introduced SB 853 that would create a lottery division to allow Hawaiians to play Powerball and Mega Millions lottery games. It would, he wrote, “fund improvements for our public schools and programs at the University of Hawaii, along with watershed protection and resources for the reduction and prevention of problem gambling.”

The bill would also create a task force under the Department of Accounting and General Services to examine “the creation and sustainability of a state lottery.”