Editorials
Friday, June 1, 2001
HONOLULU law enforcement officers are looking with some trepidation at a resident's luck on the Internet as a crime in Hawaii, one of only three states in the nation that outlaw gambling. The case illustrates the problems associated with trying to control interactive activity over a system that transcends state and national boundaries. New laws need to be fashioned to exercise control over Internet activity where feasible, while recognizing areas that arms of local law-enforcement agencies are not long enough to reach except in rare circumstances. Hawaii law needs
to address gambling
over the InternetThe issue: A resident of Hawaii has
won a jackpot on an Internet gambling site,
and police are considering whether to arrest
him for violating the state law against gambling.In the case of gambling, the Internet is such an area.
Police learned that a resident of Hawaii won a $176,688 jackpot on InterCasino, which describes itself as the world's largest casino on the Web. An online directory ranks it third among Web-based casinos. InterCasino, which is licensed and operated legally from the Caribbean island of Dominica, issued a press release identifying the lucky fellow as "Moosed" from Hawaii; he drew a royal flush while playing Progressive Caribbean poker last Saturday.
If "Moosed" declares his winnings to the state Department of Taxation, he will be admitting to breaking Hawaii's law against gambling. If he declines to do so, he will be violating state and federal tax laws -- much more serious offenses. Dean Seki, the state deputy director of taxation, said the state would not be able to collect taxes on the winnings unless the player declared it as income or the winnings were discovered in an audit.
"It is illegal," said Lt. Michael Fujioka of the Honolulu Police Department's Narcotics/Vice Division. "You can't do Internet gambling from Hawaii." He said police will have to determine whether the case falls under its jurisdiction. That seems to be the case, because the gamble -- at least "Moosed's" end of it -- occurred in Hawaii.
Fujioka is right. What "Moosed" did is illegal in Hawaii, even though gambling has become part of the culture in some areas of the country. More than 40 states allow gambling on horse races, 38 have lotteries, a dozen permit commercially operated casinos and 28 have casinos operated by Indian tribes. Meanwhile, the Internet is home to an estimated 850 gambling operations.
Casino gambling is not allowed in Hawaii because of concerns that it would tarnish the state's family appeal to tourists, not because state officials feel compelled to forbid residents from making bets -- on the golf course, at the home card table, in other social settings or on trips to Las Vegas, or any of several other places that allow casinos. The Internet should be added to that list.
If the police know or find out who "Moosed" is, prosecutors should exercise discretion in allowing him to go uncharged, as long as he pays his taxes. That will give the Legislature an opportunity in the next session to modernize the law.
Privatizing a government agency is contentious enough without the agency being the troubled Hawaii State Hospital, but the proposal is certainly worth exploring. Governor Cayetano, for the first time using a new law that allows the state and counties to transfer government operations to businesses, has suggested that the hospital could be better run by private enterprise. But the state should remember that even if it does turn over operations to a private company, it still has an obligation to provide quality care for the mentally ill. Privatizing state hospital
may be a difficult taskThe issue: The governor's proposal
that a private business take over the
facility's operation faces many hurdles.The hospital has been plagued with problems. It has been under court supervision since 1991 after the federal government sued the state because of substandard patient treatment and services. Last month, it closed one of its buildings because it was in poor repair, drawing complaints from workers about security.
About 160 patients, most of them assigned there by the courts, are housed in units designed to hold 108. In recent weeks, patients have escaped repeatedly, causing concern for the safety of the nearby community. The facility, the governor contends, seems overstaffed with 600 employees, calling into question its cost efficiency.
The proposal surely faces hurdles. Public worker unions, as expected, have complained and threatened legal action. With the health-care industry experiencing dwindling profits, businesses willing to contract for the work may be scarce. If one can be found, the federal court's oversight and requirements, such as mandatory staffing ratios, will probably remain in place.
Because the hospital is such a tangled operation, this initial foray into privatizing may not work. The state should move ahead but judiciously as it tests its newest tool intended to streamline government.
Published by Oahu Publications Inc., a subsidiary of Black Press.Don Kendall, President
John Flanagan, publisher and editor in chief 529-4748; jflanagan@starbulletin.com
Frank Bridgewater, managing editor 529-4791; fbridgewater@starbulletin.com
Michael Rovner, assistant managing editor 529-4768; mrovner@starbulletin.com
Lucy Young-Oda, assistant managing editor 529-4762; lyoungoda@starbulletin.com The Honolulu Star-Bulletin (USPS 249460) is published daily by
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