Bills proposed by two Hawaii state senators would authorize the creation of a Hawaii Lottery and Gaming Corp., but specifically closes the door to sports betting.
In the days of the Kingdom of Hawaii, casinos were a common sight, although the king of wagering was horseracing. That died out in the 1940s, and today the Aloha State is one of only two in the U.S. that allows no form of gaming whatsoever, not even a lottery. The only thing that comes close are social poker games, where no one can make a profit, even on selling refreshments. There is also no charitable gaming.
In 2010 and 2012, bills were introduced in the legislature that would have studied creating a casino. The bills died.
The law is strict. It includes a very broad definition of gambling: “A person engages in gambling if he stakes or risks something of value upon the outcome of a contest of chance or a future contingent event not under his control or influence, upon an agreement or understanding that he or someone else will receive something of value in the event of a certain outcome.”
It also precludes so-called skill games. “Contest of chance” means any contest, game, gaming scheme, or gaming device in which the outcome depends in a material degree upon an element of chance, notwithstanding that skill of the contestants may also be a factor therein.”
Two state senators, Gilbert Keith-Agarian and Dru Kanuha, seek to change all that. But will they be able to overcome the state’s official distaste for the pastime? Many people in the state actually love to gamble, attested to by the large number of direct flights between all the islands and Las Vegas. But many others fear the social consequences if gaming becomes legal in the state.
Keith-Agarian alluded to that when he introduced his bill: “We should remember that there’s already a lot of people in the state participating in gambling. The fact that we have direct flights to Las Vegas on every island should be emblematic of that.”
The senator says he would like gaming to help fund things like medical services to remote areas. “Either we fund it with this, or we have to find the money somewhere else.”
Opposition may also owe something to the fact that the state has so far resisted granting sovereign rights to any Native entities in the state, unlike the status quo in most of the states in U.S., except for Alaska. Legalizing gaming might fuel an irresistible movement to change that status.
The senators’ bills: SB 850 and 2669 are revivals of a bill that Keith Agarian introduced last year. The bill would authorize the creation of a public corporation, the Hawaii Lottery and Gaming Corporation, which would be able to “offer wagering on games of chance and games of skill, including lottery, poker, and casino games, to individuals over the age of eighteen years; provided that the corporation shall not offer wagering on any sporting event or sporting contest.”
It would also be able to enter into agreements with other state lotteries to offer multistate games such as sweepstakes and to provide prizes for the purpose of “attracting tourists and providing free exposure for Hawaii and Hawaii businesses to domestic and overseas markets.”
The bill would also allow the corporation to offer two gaming events annually to attract visitors.
The funds raised would be used for the following: public school capital improvements, University of Hawaii capital improvements, scholarships and educational loan repayment for medical students who commit to practicing in the state for ten years, medical care in rural areas, watershed protection, problem gaming programs, and administration.
All these programs are chronically short of money, he said. He told the Hawaii Tribune in an email: “There are always different perspectives when considering new industries, and we’re on the right path with every measure and discussion we have regarding generating revenues and not increasing taxes on residents in Hawaii.”
He conceded that he probably faces opposition from Hawaii’s tourist industry because it sees gaming dollars as taking away a slice from the finite pie currently divided between local business and services.
