A bill that would require the Department of Hawaiian Homelands to study potential revenue generation as well as public health and safety concerns arising from “limited casino gaming” on DHHL lands is moving through the state Legislature.
After a 10-0 vote on Feb. 4 to pass the measure with amendments in the House Economic Development committee, House Bill 1962 passed its second floor vote on Wednesday.
Rep. David Tarnas, (D-South Kohala, North Kohala) was one of seven House members voting aye with reservations, and Rep. Jeanne Kapela, (D-Kona, Ka‘u) was one of five members voting no on the floor vote.
The measure, introduced by Reps. Daniel Holt and Sean Quinlan, both Oahu Democrats, notes Hawaii is one of only two states without some form of legalized commercial gambling. Utah is the other.
“With no local economic impact from gambling, Hawaii is a ripe target market for legal gaming,” the bill states. “Hawaii residents regularly generate hundreds of millions, perhaps billions, of tax revenue dollars for other states while traveling to gamble, and in return, Hawaii receives little or no benefit.”
The bill doesn’t go as far as a DHHL-sponsored bill killed in committee last year that would have established an integrated resort and casino on DHHL land zoned for commercial use in Kapolei, Oahu. It would, however, appropriate out of the state’s general fund $500,000 for fiscal year 2022-2023 to fund a study.
The legislation notes there are 28,000 Native Hawaiians on the waiting list for DHHL homestead leases and states “even by conservative estimates, it will take the department at least another 100 years to meet the needs of its beneficiaries at current funding levels.”
Hawaiian Homes Commission Chairman William Aila Jr. submitted testimony in support of the bill.
“The social costs of gambling addiction in Hawaii from problem and pathological gamblers exceed over $20 million; however, no public funding is provided for gambling treatment and prevention, and illegal gambling rooms continue to plague Hawaii communities,” Aila testified. “… This study would examine both the potential revenue to meet the myriad needs of the Native Hawaiian people and of the department and the impacts of casino gambling.”
A similar measure, Senate Bill 2608, was killed in the Senate Hawaiian Affairs Committee with Sen. Laura Acasio (D-Hilo), delivering one of three no votes that sealed its fate.
Another approach to casino development is proposed in HB 1820, introduced by Rep. John Mizuno, an Oahu Democrat.
Mizuno’s measure would grant a 10-year license for a standalone, members-only casino in Waikiki.
The bill, if passed, would allow Oahu hotel guests 21 years of age or older to purchase a pass for the casino for $20 per day of the hotel stay. The bill has been referred to three committees, none of which have yet scheduled a hearing.
An identical bill Mizuno introduced last year died without a hearing.
Meanwhile, at least four bills that would establish a lottery also have been introduced this year.
HB 2485 and its companion, SB 2310, would put lottery proceeds into a fund the would be used to prevent and control the spread of invasive species. Rep. Greggor Ilagan, a Puna Democrat is a co-introducer of the House bill, while Sen. Lorraine Inouye, a Hilo Democrat, is a co-introducer on the Senate version of the bill. Neither bill has yet been scheduled for a committee hearing.
Another set of companion measures, HB 2040 and SB 2365, would establish the Hawaii Lottery and Gaming Corporation for the purpose of conducting and regulating wagering and gaming in the state. A percentage of profits would go to “various community betterment purposes.” Neither version of the bill has been scheduled for a committee hearing.
In addition, at least two bills have been introduced relating to online fantasy sports betting.
HB 2004 and SB 3028 would establish an online fantasy sports registration and monitoring program under the Department of the Attorney General, exempt registered online fantasy sports contests from state gambling laws, and appropriate funds for the program.
The house version was shelved by the House Economic Development Committee after Deputy Attorney General Bryan Yee testified the attorney general “does not provide regulatory services.” The Senate version hasn’t been scheduled for a hearing.
A third bill, HB 1973, introduced by Rep. Chris Todd, would allow for the regulation of sports wagering by the Department of Business, Economic Development and Tourism.
Todd, a Hilo Democrat, introduced a similar bill last year, saying he’d “like to see the state gets its fair share from all the wagering that is being done by our residents” via cellphone betting apps.
Last year’s bill was deferred, and no hearing has yet been scheduled for this year’s measure.
Email John Burnett at jburnett@hawaiitribune-herald.com.
