When Did Gambling Become Illegal In Hawaii
Is Online Gambling Legal in the State Of Hawaii?
Of all the States, only Hawaii and Utah have such comprehensive anti-gambling legislation. In the Island State, only social poker games where nobody makes a profit (not even from selling beverages) are allowed. That is it, no casinos, no charity gambling, no lottery and no sports. This article explains the Hawaii gambling laws (or rather anti-gambling laws) in detail.
First up below, a quick-fire overview of the history of gambling in this State can be found. This consists of heavyweight legislation and many busts. Next a game-by-game guide, which covers the specifics of what you can’t do. After that a legislative timeline can be found, including the key passages from the statute books. Finally, I have summarized the key points – and then speculated on how gambling in Hawaii might look in the future.
Chumba Casino Hawaii – Sweepstakes Casino Option
Chumba Casino is available in Hawaii and gives players the chance to play online casino games for real cash prizes.
Established in 1905, Las Vegas, Nevada, has since become the gambling and entertainment capital of the world, famous for its casinos, nightclubs, and sporting events. In the first few decades. Attorney’s Office in Hawaii is cracking down on illegal gambling operations in the state. The latest enforcement action includes five cases that resulted in charges against 15. Home / Business / No more fun in the sun: illegal gambling ring in Hawaii busted. No more fun in the sun: illegal gambling ring in Hawaii busted. 19 September 2019.
Hawaii Gambling Laws – A Brief History
This State was formed in 1959 – and gambling has been against the law ever since. In pre-State colony days, there was a horse-racing scene, and I am sure many bets were laid on the black market on those races. These declined and stopped in the 1940’s and efforts to legislate have met with no success since.
Periodically, headlines scream of big busts of just about every kind of gambling you can think of. These include a ‘Lottery Queen’, a major indicted in connection gambling extortion, a sports-betting ring getting busted and the seizure of gambling machines. If nothing else this shows that there is still a significant appetite among Hawaiians for gambling, even if their government shows no signs of budging on the legal perspective.
Most recently, there have been bills introduced in 2010 and 2012 requesting that a study be done into setting up a casino and the regulation of online poker respectively. These caused a stir in the media – but did not get far through the legislative process before being killed off.
Hawaii Gambling Laws – An Overview of Which Gambling Games Are Legal
Casino Games: No, like most forms of gambling, this is strictly against the law in Hawaii – the closest legal US casino by distance would be in the State of California.
Online Casinos: No, online gambling is covered by the broad definition of what constitutes a gambling game in this State. Basically any game with a chance element, and some risk / reward, even if skill can materially affect the outcome.
Live Poker: Yes, you can play poker socially in Hawaii. There are strict rules surrounding social poker games. No profit can be taken by any house or individual organizer. This extends to profiting by selling food or beverages, which rules out pub leagues which are popular even in conservative States like Utah where poker is also social-only.
Online Poker: No, there have been some recent bills which would regulate online poker games – though these have not made it far through the legislative process before being killed off.
Sports Betting: No, there are no racetracks or pari-mutuel betting machines. Hawaii has a rich history of horse racing, starting in the 1800’s and continuing until the end of the 1940’s when this died out.
Lottery Betting: No, this is one of the few states which does not have a lottery nor participate in any inter-State lottery programs.
Bingo Games: No, there are not even any provisions for charitable raffle or bingo gambling in Hawaii.
Hawaii Gambling Laws – Timeline of Key Statutes
The main gambling provisions have remained largely unchanged since the State joined the US in 1959. Unlike in other States, any amendments have strengthened the anti-gambling rules – rather than allowed certain types of gambling to occur. Like many legal definitions, the ones Hawaii uses is broad enough to make sure that fans of any particular game can’t say that they are not covered. Here are the key pieces:
First their broad definition of gambling:
[su_quote cite=”Chapter 712-1220″ url=”http://www.capitol.hawaii.gov/hrscurrent/vol14_ch0701-0853/hrs0712/hrs_0712-1220.htm”]A person engages in gambling if he stakes or risks something of value upon the outcome of a contest of chance or a future contingent event not under his control or influence, upon an agreement or understanding that he or someone else will receive something of value in the event of a certain outcome.[/su_quote]
Then, just in case you were about to play the ‘skill game’ card, their definition of a Game of Chance puts that one to bed:
[su_quote]”Contest of chance” means any contest, game, gaming scheme, or gaming device in which the outcome depends in a material degree upon an element of chance, notwithstanding that skill of the contestants may also be a factor therein.[/su_quote]
There is no getting around it, even the definition of a gambling device (also illegal) is broad enough to cover just about anything.
There have been some recent attempts at legislation for gambling, though to date these have been killed off very early in the legislative process and have not gotten to committee – let alone had the opportunity to be put to the popular vote. Here are some examples:
1959: A bill is introduced to bring back Horse Racing via a track on the island of Maui, this did not pass the house of representatives.
2010: Separate bills to investigate the setup of a committee to oversee an investigation into the viability of casino gambling and a proposal to set up a State lottery. Neither bill made it as far as the floor.
2012: A bill (number 2242) requesting the setup of another committee, this time to look into the regulation of online poker is submitted – again, it is killed off before there is a chance of a serious debate.
Talk of yet more bills periodically gets the poker press excited. Experienced commentators suggest otherwise, that the opposition to gambling is strong enough in the Island State to ensure keep the status-quo for the foreseeable future.
Hawaii Gambling Laws – Summary and a Look into The Future
Along with Utah, this is the strictest anti-gambling State of all, with only social poker games allowed for residents. One thing to bear in mind is that individual participants in gambling games are rarely affected by the regular busts and crack-downs – which are aimed at the organizers and profiteers. Residents wishing to gamble at offshore operators may be breaking the law in the strict sense, though they are doing so with minimal risk of being personally prosecuted. Please take legal advice before making your own decision on whether to play online poker at offshore sites from Hawaii.
The most likely future scenario for Hawaii is no change. If there is an (unlikely) drop off in tourism income then change might be possible – at the moment this State appears very happy with the current no-gambling situation.
Useful Resources:
State Laws
Wiki History (mentions horse racing)
When Did Gambling Become Illegal In Hawaii Right Now
State legislature
In a recent Civil Beat editorial, Lowell Kalapa asked the question, “Can Legalized Gambling Fill Hawaii’s Budget Hole?” and then proceeded to argue against it.
The real answer to his question is: “Yes it Can!” Hawaii is the only American state outside of Utah that prohibits gaming. There are 311 million people in the other states and including Hawaii, but excluding Utah, 99.6% of them, live in states that permit gambling, and all of the residents of Utah have hundreds of casinos within easy driving distance of the borders of their state.
What we have here in Hawaii, instead of legal gaming, is a large, uncontrollable, criminal gambling enterprise that involves all sorts of bad elements — including, according to the news reports, rogue police officers. Estimates of the size of our homegrown, illegal, gambling operations range all the way up to one billion dollars per year, and history has shown that Prohibition creates crime, not lessens it. Legalizing gambling will have the same effect that legalizing alcohol had. It will lessen, or even end, that crime. How much “bathtub gin” do you think is made and sold here? None. But there is plenty of illegal gambling and none of it is taxed. If it were taxed, we in Hawaii would have about $50 million in tax revenue added annually.
But what about other, legal, gambling? Hawaii residents also spend about a billion dollars a year on that. Hawaii residents take a total of about 500,000 total trips to Las Vegas, and other gambling destinations each year with many of our citizens taking multiple trips per year. Boyd Gaming alone reported that it earns about $600,000,000 from Hawaii visitors each year. That means that Hawaii is contributing about one billion dollars to the economy of “neighboring” Nevada each year.
Economists like Mr. Kalapa tell us that each dollar spent in a local economy generates about 3.5 times as much, via what they call “the multiplier effect.” That is, the more money that is flying around in an economy, the more money it generates. The billion dollars that Hawaii residents are “contributing” to Nevada, adds about about $3.5 billion each year to their economy and takes from our own. We get nothing. No wonder they love us in Nevada!
All, or virtually all, of our mainland tourists come from states that already have casinos or other forms of gambling, and many of them favor our having one also. After all, there is virtually nothing for tourists to do after dark in Waikiki. No movie theaters. Almost no major entertainment venues. The Waikiki Improvement Association did some polling of our Asian visitors recently, and found that nearly 80% of Japanese, South Korean, and Chinese visitors would appreciate having a casino as an entertainment option in Waikiki.
When Did Gambling Become Illegal In Hawaii State
The bill we had introduced in the legislature last year calls for limited gaming. One stand alone casino, only. All entities that would bid on that single license would have to ante up a $1 million, non-refundable fee, just to bid. The winning bidder would have to pay a $150 million “impact fee” to the state, and the casino itself would be subject to a General Excise Tax of 15%, a tax equal to more than three times the tax paid by all other tax payers in Hawaii. The economic modeling that we did indicates that the single, stand alone, casino would employ 3,660 directly, and produce another 5,717 jobs off-site, increasing the number of total jobs for Hawaii workers by 9,377.
Casinos are very labor intensive. The gross wages per year for those new jobs would amount to an aggregate of nearly $533 million in new money to the local economy. It is expected that the increased taxes from gaming fees, income taxes from employee wages, and from the ripple effect of new vendor jobs, etc., and from the General Excise taxes, will generate an added $86.3 million each year. None of this includes the investment costs for construction and etc. which are estimated to be well in excess of $300 million.
Ah, but what about the “social costs?” The emotional attacks that legalizing gambling will create crime, increase personal bankruptcy, and so on, are always a “hot button” item here in Hawaii. However, the facts in the rest of the country don’t bear them out. Both sides in the casino debate cite various academic studies in their interests, but the only source on that issue that ought to count is the Congressional National Gambling Impact Study Commission, and in its official study of those questions, it found that legalizing gambling has no significant effect on crime, personal bankruptcy, etc., either way. And the facts bear that out among the more than 307 million Americans in 49 states that have already ended prohibition of gambling.
When Did Gambling Become Illegal In Hawaii Five-0
So, to answer Mr. Kalapa’s question, “Can Legalized Gambling Fill Hawaii’s Budget Hole?” The answer is yes, it undoubtedly can help. No single “silver bullet” exists that will solve all of Hawaii’s need to have sufficient income forever. But it goes without saying, that Hawaii will need a wider variety of sources of income than we have now and no other industry is beating down the door. Casino gaming is something that ought to be tried.
About the author:John H. Radcliffe has been an active lobbyist at the state and national level for forty years. He has been a legislative advocate for clients in Hawaii for thirty-four of those years. He currently represents more than two dozen local and national entities, including the University of Hawaii Professional Assembly.