Hawaii Legislature Indefinitely Defers Bill to Legalize Retail Casinos

Casinos will not be coming to the Hawaiian islands any time soon.

The Hawaii State Legislature on Thursday indefinitely deferred a bill that would authorize casino gambling throughout the tropical paradise. Senate Bill 893 would have created the Hawaii Gaming Control Commission to add a series of gaming facilities to the new Aloha Stadium Entertainment District.

The bill called for a 15 percent tax on gross gaming revenue.

Overwhelmingly negative sentiment

State Sen. Lynn DeCoite (D-District 7) announced the decision to halt the bill’s progress, citing an overwhelming lack of support for the proposal. The verdict came in the Senate’s Economic Development and Tourism Committee, meaning that it did not have the chance to go before the full Senate. 

“Casino gambling has not always been a favorite subject,” she said. “Regardless of if we [are] flying to Vegas or flying to any other place, we've always had our challenges here in Hawaii.”

DeCoite also said that Hawaiian lawmakers don’t want to levy more taxes against local residents or businesses. 

The Department of Commerce and Consumer Affairs, the Department of the Attorney General, and the Honolulu Prosecuting Attorney’s Office were outspoken opponents of the bill. Several other official bodies also registered their criticism.

Thursday’s decision was ultimately met with a round of applause from many in attendance, meaning casino backers will face an uphill battle whenever future attempts at legalization are presented.

Another failed attempt

Among the concerns raised by opponents of casino legalization were the potential for increased crime rates, problem gambling behaviors, and drawbacks to the local economy.

The topic of casinos has long been a sore spot of conversation in Hawaii. It’s common for locals to travel to Las Vegas to get their gambling fix before returning to their anti-gambling home.

DeCoite acknowledged the longstanding criticism of casinos and gambling, and the stigma that hangs over the conversation every time it arises.

Hawaii and Utah are the only states that have complete bans on all forms of gambling, including land-based casinos, online casinos, sports betting, sweepstakes casinos, the lottery, and more.

A number of bills related to retail and online casinos and legal sports betting have been floated around over the past few years, though none have made substantial progress.

Although SB 893 is not totally dead, its indefinite deferral means it is unlikely to be discussed in the near future.