Hawaii lawmakers file seven gambling bills

Hawaii state lawmakers are set to have a comprehensive debate on gambling legalization in Hawaii as the state face significant budget shortfalls, a struggling tourism-based economy, and the challenge of trying to get Native Hawaiians onto state Hawaiian home lands.

The opposition to change Hawaii’s historic distinction as one of only two states — along with Utah — that prohibit all forms of legalized gambling remains strong, including from Gov. David Ige, Senate President Ron Kouchi and House Speaker Scott Saiki, Star Advertiser reports.

However, Saiki introduced HB 359 in order to debate whether to allow the state Department of Hawaiian Home Lands to operate a single casino resort on unidentified DHHL land west of Ko Olina, which is intended to generate millions of dollars in annual tax revenue to meet its obligation to get Hawaiians off of a waitlist and onto their ancestral lands and into homes.

State Sen. Jarrett Keohokalole, Senate majority floor leader and vice chairman of the Senate Hawaiian Affairs Committee, introduced a similar bill on the Senate side on behalf of DHHL. “We also should have a discussion about gaming in general. We should talk about whether gaming is good policy,” he said.

Hawaiian DHHL beneficiaries are divided over the DHHL proposal, which would allow a destination resort-casino that would permit 24/7 gambling, liquor, a golf course, aquariums, theme parks and sporting events. Forms of gambling could include cards, dice, tiles, dominoes and electric games intended to generate tax revenue for the Hawaiian Home Lands program. The program was created a century ago to return Hawaiians with 50% Native Hawaiian blood to their native lands though farming, aquaculture, pasture lands and housing.

Last month the Hawaiian Home Lands Commission voted 5-4 to endorse the casino concept. Under DHHL’s plan, a “wagering tax” of 45% would be imposed on all gross gaming revenues. Out of that, 75% would be directed to the Hawaiian home operating fund, 5% to the Native Hawaiian rehabilitation fund, 15% into the state general fund and 5% into a new state gaming fund.

As usual, several bills have been introduced this legislative session that would allow a wide range of gambling, including SB 853, SB 561 and HB 363, which would allow for a state lottery. The program would help fund capital improvement projects at public schools and the University of Hawaii system, scholarships and educational loan repayments for medical students who practice in Hawaii for 10 years, along with other programs.

In addition, HB 457 would look at the feasibility of various forms of gambling, including offshore gaming, a lottery and whether two casinos in West Oahu could be allowed “without impacting the aloha spirit and causing Hawaii to be viewed as a gambling capital."

HB 772 would allow a single, Las Vegas-style casino atop the Hawai‘i Convention Center. The bill was introduced by Rep. John Mizuno, vice House speaker, who said the casino would be aimed at tourists. It would circumvent likely opposition from Hawaii hotels by requiring casino customers to stay overnight in an Oahu hotel and pay a daily fee of $20 that would subsidize shuttles to and from Oahu hotels and the casino.

Local residents who want to gamble also would have to stay in an Oahu hotel and pay the fee, keeping some Las Vegas gambling and hotel revenues on Oahu, Mizuno said. He believes the state can restrict Las Vegas-style gambling to a single casino, or two, and said concerns about opening up gaming to a Native American tribe in Hawaii are unfounded.