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Hawaii Legislators Pitch Several Gambling Bills to State

Hawaii is a paradise tucked away from the hubbub of the mainland. The locals are often happy with what little they can get and a booming tourist industry has been nourishing the island. This idyllic picture may be now under attack by the realities of the modern economy – and it’s catching up with the lackadaisical lifestyle of locals.

The island state is looking to boost its tourism industry, bring in an extra buck for the state’s coffers, and regulate a sector that has long existed illegally. That is why a handful of bills were introduced to several committees over the course of last week or so and will now seek to legalize the gambling industry in its numerous permutations. Their chances of success are slim at best.

Gambling Regulation in Hawaii Set to Make Big Waves

Hawaii has been a holdout state when it comes to its gambling industry. There has been very little local support for legalizing gambling, even though the state can use the additional proceeds, and locals are clearly engaging with offshore betting sites.

The first bill to be floated over the past week was House Bill 1820. It made an appearance on January 24 and outlined an action plan whereby a members-only casino on the island of Waikiki would be granted a 10-year license. This would allow the state to add a new attraction to its tourism pitch and also create a new revenue stream for the budget.

The bill proposes the entry into the casino resort be charged at $20 per day, with the rest of the details not as clearly defined. Another pitch comes from House Bill 1973 which wants to introduce sports gambling in the state. Under the proposed framework, it would be the Department of Business, Economic Development, and Tourism’s purview to regulate the industry.

House Bill 1973 goes in some detail to create a more comprehensive framework whereby suppliers and operators are clear on what would be necessary to access the market. Then, there is House Bill 2040 which suggests that a Hawaiian Lottery and Gaming Corporation should be established. The entity would regulate various aspects of gambling, much like there are established regulators in other states in the US.

A Hawaiian gaming watchdog could introduce both sports and casino gaming frameworks if legislators approve it. Meanwhile, House Bill 2485 puts forward the idea of creating a lottery commission. Another bill that was introduced last week was House Bill 1815, which comes with a rather onerous tax rate of 55%.

Will Hawaii See Regulated Gambling Any Time Soon?

There have been many feasibility studies carried out over the years. Some of the draft bills pitched to the state in the most recent bout of regulation frenzy also suggest that such studies are carried out before any final decision is reached. In 1995, the Department of Business, Economic Development, and Tourism estimated that shipboard gambling could generate anything from $47 million to $104 million in tax money.

There have been more studies since. A follow-up survey estimated that an additional $105 million in tax revenue may come from consumer spending. While new proposals are now floating, it’s unlikely most of these bills – if any – would stick.

One of those reasons is that the 76 seats in the legislature are up for reelection and a divisive issue such as gambling could impinge on officials’ chances for reelection. According to HB1820 sponsor John Mizuno, the precariousness of the reelection would cool down enthusiasm for regulated gambling in the state, but it’s a start all the same.

Categories: Industry
Tags: hawaiiusa
Fiona Simmons: Although Fiona doesn't have a long-spanning background within the gambling industry, she is an incredibly skilled journalist who has built a strong interest in the constantly growing iGaming network. The team at GamblingNews.com is glad to have her on our roster to help deliver the best stories as soon as they hit. Aside from writing, she loves to dabble in online casino games such as slots and roulette, both for her own enjoyment and also as research to better improve her understanding of the industry.
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