StarBulletin.com

Bad economy boosts interest in gambling


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POSTED: Sunday, February 07, 2010

A massive state budget deficit and an ailing economy have inspired lawmakers to introduce more than a dozen bills that legalize gambling in Hawaii, revitalizing interest in what lobbyist John Radcliffe said “;ain't a new idea.”;

What is new, however, is the variety and volume of the bills in the Legislature. There is also a new energy surrounding them, according to those who have tracked gambling bills for decades.

“;We're in trouble with all of them,”; said Dianne Kay, president of the Hawaii Coalition Against Legalized Gambling. Since 2002, she added, “;there hasn't been this kind of momentum.”; After two bills whipped through committees in the state House last week, she's “;hoping the Senate won't be so enthusiastic.”;

Radcliffe, a vigorous proponent of legalized gambling and a lobbyist since 1976, also has noticed a difference.

“;I think there's a lot more energy,”; he said. “;One thing is certain, we can't go back to the old ways. You can't rebuild that safety net simply by increasing taxes.”;

Last week, the Committee on Hawaiian Affairs adopted House Bill 2759, which could establish casinos on Hawaiian Home Lands, with 80 percent of revenues to benefit Hawaiian Home Land communities, and the other 20 percent going to the state's general fund. The bill is now on its way to the House Judiciary Committee after tallying a 40-9 vote by the full chamber on Friday. Kay expressed “;shock”; that it breezed through.

On Thursday, the state House Judiciary and Consumer Protection committees passed House Bill 2251 to establish a gaming commission that could issue one 5-year license to a casino gaming operation in Honolulu. It also limits the activity to those over 21 years old, and creates a wagering tax on casino gaming.

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The joint committee adopted the measure to give the state “;an alternative source of funding to help address Hawaii's approximately $1.4 billion deficit, and jump-start Hawaii's economic recovery,”; Rep. Jon Riki Karamatsu, who introduced the bill, said in a statement.

In an interview he added that state worker furloughs motivated him to look at fresh possibilities, and he wants to end the steady flow of money Hawaii sends to Nevada. But he's also concerned about the social ills that gambling could bring.

“;Although I may not be the No. 1 supporter of gambling, I just want to keep this option,”; he said. The bill originally specified that only visitors could gain access to the casino, but was amended under the presumption that forbidding residents would be discriminatory.

A lively discussion preceded voting Thursday, with Republican Rep. Barbara Marumoto noting that casinos “;really soak up a lot of discretionary income.”;

Rep. Cynthia Thielen also objected, as did Hermina Morita, who said, “;Just because we have a down economy doesn't mean we have to throw our values out the door.”;

Those testifying against any kind of legalized gaming presented the negative economic and social effects apparent in some of the 48 states that allow gambling (Hawaii and Utah are the only ones that do not). Some also cited the possibility that Hawaii's tour groups would suffer if people gravitated to casinos.

But Jim Boersema said he visited casinos in the Bahamas and found them empty during the day. Instead, people were out on the golf course and enjoying the beach. They went to the restaurants, shops and casinos at night, he said. Boersema, who testified on behalf of Unity House, an organization that assists families of union workers, owns Matteo's Restaurant and Zanzibar Nightclub in Waikiki.

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“;Nobody's trying to turn Hawaii into Las Vegas,”; he said. “;This should be a stand-alone casino”; with nothing more than a bar to encourage people to patronize local shops and restaurants. Suggestions that floated through the hearings included transforming a dormant movie theater into a casino, and possibly requiring local residents to stay in a Waikiki hotel to gain entry into the casino in an effort to boost commercial activity.

“;Right now, we don't get a lot of (residents) in Waikiki,”; he said. “;'There's nothing to do down there'; that's the complaint I hear over and over.”; Boersema is not a paid lobbyist but works with Radcliffe, who is associated with Marketing Resource Group, a Lansing, Mich., firm with clients that would bid on the opportunity to construct and manage a casino in Hawaii.

“;Gambling has become more acceptable to people,”; Boersema said. “;Practically every place in the world now has gambling. It just happens to be part of society nowadays.”;

Despite what appears to be momentum in the Legislature, Jack Hoag said he believes “;the majority of people who oppose gambling haven't spoken up yet”; and suggested that Gov. Linda Lingle might veto whatever emerges from the Legislature.

Hoag, public affairs director for the Church of Jesus Christ of Latter-day Saints in Hawaii and former president of First Hawaiian Bank, noted the economic problems that cities often see with the emergence of legalized gambling. These include rising debt, crime, addiction and homelessness, according to an independent study by John Warren Kindt out of the University of Illinois.

Kay added, “;It would hurt the tourist industry, but it would hurt the local people the most. It's wrong to teach the youth of our state that you can get something for nothing. We think Hawaii would not benefit in any manner.”;

Proponents argued that despite a diligent police crackdown, underground gambling thrives in Hawaii.

Other bills introduced would create state lotteries or scratch-off games; allow slot machines and video poker at the airport; and ask voters to decide if gambling should be legalized.

“;It's not a panacea,”; said Maui Rep. Joseph Souki. “;It's just another stream of income coming into the state.”;

 

               

     

 

CHIPS AHOY!

        State lawmakers bet on a dozen-plus gambling bills to bridge budget gap
       

Legislators ante up

       

Some gambling bills to watch in the Legislature:

       

» House Bill 2759: Authorizes Hawaiian Homes Commission to allow gaming on Hawaiian Home Lands.

       

» HB 2251: Establishes a gaming commission to issue one 5-year license to a casino gaming operation in a county with a population of more than 500,000.

       

>> HB 2038 and HB 2342: Create a state education lottery to authorize entry into agreement with the Multi-State Lottery Association (with slight variations between the two bills.)

       

» HB 2396 and Senate Bill 2867: Grant a 10-year license for one stand-alone casino in Waikiki, establish a gaming control commission in Hawaii and impose a 6.75 percent wagering tax on gross receipts, create a state gaming fund and a program to help compulsive gamblers.

       

» SB 2448: Creates a state scratch card game, commission and account, with certain revenues to be deposited into the education fund administered by the state Department of Education.