Hawaii, one of the last states prohibiting gambling, may soon embrace the industry as new legislative proposals seek to introduce casino gaming and sports betting. Spearheaded by Senator Glenn Wakai, these efforts target the potential economic benefits of legal gambling, aiming to recapture revenues that Hawaiians typically spend in Las Vegas, often referred to as the “Ninth Island.”
A broad framework for regulation and oversight:
The proposed legislation, if passed, would dramatically change the state’s gambling landscape. As KHON2 reports, it includes a bill for 20-year casino licenses within the New Aloha Stadium Entertainment District and the Hawaii Convention Center. Senator Wakai emphasized the broader benefits, stating, “By opening up to casino gaming, we can keep this money within our state, boosting our economy and directly funding educational and social programs.”
According to Honolulu Civil Beat, central to Senate Bill 893 is the establishment of the Hawaii Gaming Control Commission, which would oversee the industry, including a 15% tax on gross gaming receipts and the creation of a state gaming fund. This fund would support not only the state’s budget but also a compulsive gambler program, acknowledging the potential social impacts of gambling.
Opposition to the bill cites concerns about the social risks associated with gambling. Senator Brenton Awa pointed out, “Easy access to gambling could lead to increased financial distress for families, particularly for those who are not disciplined with their finances.”
Another legislative piece, Senate Bill 891, has been transformed to initiate a Gaming Working Group within the Department of Business, Economic Development, and Tourism. The Chair of the Senate Economic Development and Tourism Committee, Lynn DeCoite, highlighted the inclusive approach of the legislative process, ensuring that the public will have opportunities to express their views on these transformative bills.
In parallel with the casino gambling bill, proposals for legalizing online sports betting and daily fantasy sports are gaining traction. These initiatives, led by Rep. Daniel Holt and supported unanimously in Senate and House committees, aim to regulate and tax online sports betting platforms at 10%, set to take effect by July 2025.
Supporters argue that regulating sports betting could bring illegal gambling under state oversight, thus benefiting the economy and supporting crucial public services like education. Jeremy Limun from BetMGM highlighted, “Regulating sports betting provides a controlled environment that protects citizens while generating essential revenue for public programs.”
Mixed reactions and ongoing debates:
Despite the enthusiasm of some legislators and community stakeholders, not everyone is convinced of the benefits. Boyd Gaming, a major player in the casino industry, expressed skepticism about the potential financial impact, suggesting that similar initiatives in other states have not yielded the expected financial benefits.
As the debate continues, the future of gambling in Hawaii hangs in the balance, with significant implications for the state’s economy and social fabric. The legislative journey of these bills will be closely watched by both proponents and opponents of gambling legalization.
