A bill that would create a lottery to help fund education is moving forward in the Hawaii legislature.
At the same time, however, three other bills that would legalize gaming in some form have stalled in the House, including a bill that would authorize a casino at the top of the Hawai‘i Convention Center.
The bills that stalled included: House Bill 383, which would have authorized oversee live poker rooms; HB772, which would have allowed a casino on the Hawai‘i Convention Center where players would be required to stay in an Oahu hotel while they are playing; and HB736, which would create a pilot program for digital sports betting.
Hawaii has a long tradition of holding out against all forms of gaming, so despite the tentative approval of the Senate Education Committee, final approval of Senate Bill 816 is still seen as unlikely.
Under the Senate bill the five-member panel could operate a lottery as soon as January 1, 2023. The commission would create regulations and oversee operation of the lottery. Forty-five percent of the revenue would be paid out in prizes, with the remainder going to the University of Hawaii, public education and the general fund.
The governor would appoint members of the commission and the director of the lottery, subject to confirmation by the Senate.
Hawaii is one of two states with no legal form of commercial gaming (Utah is the other.) Governor David Ige, and the leaders of both the House and Senate are on record as opposed to any gaming expansion.
Critics also argue that lotteries target people in lower socioeconomic and educational strata.
Honolulu Prosecuting Attorney Steve Alm, the Honolulu Police Department and Hawaii Family Forum also oppose a lottery.
There are economic arguments in favor of it, including the proposed budget cuts to the Department of Education that amount to more than $270 million over the next two years. Writing about the bill Superintendent of Schools Christina Kishimoto stated, “Our public schools cannot sustain these dramatic cuts, while simultaneously ensuring the delivery of a quality K-12 public education system.”
In addition, the University of Hawaii has a backlog in deferred maintenance projects totaling more than $500 million.
Rep. John Mizuno, vice speaker of the House, who wrote the bill that would have allowed the casino at the convention center, commented, “The great equalizer is time. Gaming is another controversial issue whose time has not yet come.”
Previously, a bill that would have allowed the Department of Hawaiian Home Lands (DHHL) to build a casino in Kapolei to generate funds to help settle 28,000 native Hawaiians was not completely defeated. Instead it was sent back to the Hawaiian Home Lands Commission, which was given five years, until December 31, 2026, to study the issue of a casino, and if it would actually achieve the goal of putting the settlers on their ancestral lands.
The commission previously voted 5-4 to send the idea to the Legislature.
The commission would have some restrictions. It would require a “super majority” of the commission to endorse a proposal; it would not allow gaming “across the board” and would not allow Native American tribes to operate casinos in the state.
Tyler Gomes, the deputy DHHL chairman, and the author of the homelands casino concept, told lawmakers, “we appreciate the affirmation of self-determination.” He said the five years would give them time “for the department to do due diligence.”
