Hawaiian Legislation Looking at Legalized Gaming to Supplement Tourism

As a major vacation destination, Hawaiian investors and legislators are looking at legalized gaming to supplement an already globally recognized tourism industry.

The Hawaiian state legislature saw a slew of gaming measures thrown around the floor, with online poker, casino, and shipboard gaming among the chief focal points.

Rep. Angus McKelvey, chairman of the House Economic Revitalization and Business Committee, was more than in favor of the opportunity to speak on such topics, contributing, “Why not look at this? We get the hotels filled four to six weeks. We get the shots between the rounds of Hawaii’s beauty. It’s free advertising.” Already the representative expects to see a serious poker bill, legalized bingo and plans to open a standalone casino in the next legislative session.

Even voices from the counter side of the legalized gaming movement admit this is an opportunity to revitalize an economy that is waning in other sectors. Citizens for a Better Way head Liz Watanabe said, “We’re saying this is an option that exists right now. This is something we need to look at seriously because it will generate money and jobs now.”

What it means for Hawaii

The core contribution of the most prominent bill, SB 677, provides that money generated from gambling taxes will go to education and other public goods. Online operators would be required to obtain license, just as land-based operators, by meeting strict criteria and criminal background checks will be the norm for anyone looking to get involved in the industry.

The language states explicitly that passage of the bill would, “Offer internet 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 internet wagering on any sporting event or sporting contest.”

Because Hawaii currently has zero gaming infrastructure in place, this could be a serious boon for the state, which would share liquidity under such legislation with other states that have already adopted similar bills, including New Jersey, Nevada, and Delaware.

Arguments For And Against

Radio ads calling for a casino have been gaining traffic among the public, with many thinking a bill would be introduced as soon as next year. It is estimated a standalone casino in Waikiki would generate anywhere from $100 million to $150 million within its first year of operation. However, many detractors push the narrative that legalized gaming could cost more than it’s worth.

As with many opponents of legalized gambling, the argument points to crime, with Gamblers Anonymous advocate and recovering gambling addict Paul Lancaster contributing, “There’s some people that could go gamble a couple hundred dollars and go home. But those people that can’t – now they’re going to have to steal from somewhere. They’re going to be lying to somebody. It’s a double-edged sword.”

This legislative session saw the introduction of 16 gaming bills in all. Every one of them was defeated, but it is understood that many bills will resurface next session with far more traction as the economy continues to struggle and jobs outside of tourism struggle to keep up with demand.