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Hawaii: 6 Bills Introduced to Make Lottery Legal and Greenlight Casino Development

Article by : Helen Feb 5, 2021

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The Aloha State is a black sheep in the United States when it comes to legal gambling: not even the lottery is allowed in Hawaii. (Utah is the only other state in the U.S. that is so harsh with games of chance.) But that may change soon: Hawaiian legislators have six gambling-related bills to vote on during this legislative session.

If all of them pass, the long-discussed casino resort project on the islands will be greenlit, with the establishment of the Hawaii Lottery and Gaming Corporation and the Hawaii state lottery in addition to that. Lawmakers are putting these bills “under serious review.” The reason behind such consideration is obvious: Aloha State faces a $1.4 billion budget deficit in 2021, according to Gov. David Ige, after a disastrous year for its tourism-based economy. On the other hand, the opposition towards legalizing gambling in any form is strong: Gov. David Ige, Senate President Ron Kouchi, and House Speaker Scott Saiki have all gone on record saying they are against the idea.

But it was Scott Saiki who introduced one of the six gambling-related bills, HB359, for this legislative session. The bill was meant to open a debate on the Department of Hawaiian Home Lands’ (DHHL) potentially opening up and operating its own casino. The proceeds from such a casino would allow providing housing to 28 thousand Hawaiians currently on the waiting list.

State Sen. Jarrett Keohokalole, who introduced a similar bill on the Senate side (SB1321), is still opposing the idea of gambling made legal in the Aloha State but is willing to open the discussion on the matter.

We should have a discussion whether the casino plan is good, viable policy for the state to consider. … Given this budget situation, it’s not likely that the department will be likely to expect funding to accomplish [putting people off the waiting list]. … My priority is on addressing the waitlist.

If the state legislators vote in favor of DHHL’s plan, gaming revenues will be taxed at 45%, with three-quarters of this “wagering tax” forwarded to the housing fund. The rest would be divided between the state budget (15%), rehabilitation fund (5%), and a to-be-established gaming fund (5%).

There is one more bill, HB 772, proposing the construction of a casino atop the Hawai‘i Convention Center. The Las-Vegas-style venue would target tourists, but the bill itself is likely to run into substantial opposition. It would introduce a $20 per day fee for anyone who wants to gamble, and potential gamblers would have to stay in an Oahu hotel – even if they are locals.

Three other bills – SB 853, SB 561, and HB 363 – would make the lottery a reality in the Aloha State. If passed, SB 561 and its companion HB 363 would establish the regulatory body, the Hawaii Lottery, and Gaming Corporation, while SB 853 would be the legal basis for the state-owned lottery itself. The lottery bill has only two drawings mentioned in the text (Mega Millions and PowerBall), so players would be limited to these two options if the bill gets enough support on the Senate floor.

A state lottery is an extremely seducing option for legislators at the moment: the proceeds from it would fund public school system improvements and the University of Hawaii, among other things. Finally, there is also HB 457 that will open a debate on legalizing “various forms of gambling,” with the most notorious being offshore gaming, sanctioning a lottery, and giving the green light to two casinos in West Oahu, provided they can operate “without impacting the aloha spirit and causing Hawaii to be viewed as a gambling capital.”