Is a casino a
good bet for OHA?

A Hilo legislator suggests that
OHA and ERS buy one
in Las Vegas

By Pat Omandam
Star-Bulletin

Imagine a low-key Las Vegas casino where T-shirts, shorts and rubber slippers are the norm.

Where the restaurants and stores offer Hawaiian-style foods and products at affordable prices.

And where nearly every penny spent -- whether on goods or gambling -- supports Hawaii residents and native Hawaiians.

That's the idea behind a House resolution requesting trustees at the Office of Hawaiian Affairs and the Employees' Retirement System to study the feasibility of jointly purchasing a Las Vegas casino, according to state Rep. Jerry Chang (D, Hilo).

Chang, who introduced House Concurrent Resolution 91, said about 40,000 Hawaii residents visit Las Vegas each month, and most stay at the same Hawaii-themed hotel and casino as part of a tour package. The reason they go there, he said, is because it makes them feel like they're home.

Since the state Legislature isn't likely to pass any gaming bills soon, Chang believes one way to boost revenues for OHA and the retirement system, and to keep local money tied to Hawaii, is to have these agencies own and operate a Las Vegas casino.

Chang believes that, given the choice, most islanders would flock to a Hawaii-owned casino knowing their money would help the pension fund of government employees and generate money to better conditions for Hawaiians.

"So why can't we own the hotel/casino and make them some money off it?" he said.

The resolution is scheduled to be heard at 9 a.m. Monday before the House Labor and Public Employment Committee. It asks OHA and retirement system boards to look at co-ownership of a casino to help alleviate the issue of state-owed revenues to OHA, and to enhance funding of the $9 billion retirement system. They would report back to the 2000 Legislature with findings and recommendations.

But don't bet on OHA to support the idea, warned trustee Mililani Trask, whose OHA legislative and government affairs committee voted to oppose the resolution.

Trask said the semiautonomous agency, which listed a $314.3 million investment portfolio as of Jan. 31, welcomes joint ventures for economic development. But it does not want to buy a casino with the retirement system, she said.

"I think that if gaming becomes a reality in Hawaii, it would definitely be an issue that everyone, including OHA, is going to have to look at. But the idea right now that we would somehow joint-venture with the retirement system for a casino purchase seems rather off the wall," Trask said.

State Rep. Michael Kahikina (D, Nanakuli), who co-signed the resolution with six others, said he doesn't necessarily believe OHA and ERS should own property together, but supports studying the idea."I have been opposed to gambling, but I should be open-minded."

Chang said he didn't have a particular casino in mind when he introduced the resolution.

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January '97 OHA Ceded Lands Ruling