Hawaii Gaming Study Bill Advances, Tax Money Could Help Build Sports Stadium

In Hawaii, efforts to advance legislation for a study on the effects of legalized gambling on the island state are ongoing in the capital, Honolulu. 

Gov. Josh Green (D) remains neutral regarding the proposal to lift Hawaii’s ban on all types of gambling, but he acknowledges that permitting specific types of gambling could produce additional tax revenue that might contribute to the construction of affordable housing and potentially aid in financing a new football stadium for the University of Hawaii. 

Senate Bill 891 aims to create a "Gaming Working Group" in Hawaii’s Department of Business, Economic Development, and Tourism. The panel would be responsible for informing the State Legislature on how gaming activities could aid the department’s initiatives to bolster Hawaii’s economy. 

SB891 passed the Senate in early March with nearly unanimous backing. Since then, it has advanced in the House of Representatives, receiving support from the Economic Development and Technology Committee as well as the Tourism Committee. 

 

Stadium Initiative 

The state of Hawaii has designated funds for a new football stadium at the University of Hawaii. The project is expected to exceed $400 million, but Green believes that an $800 million budget would enable a state-of-the-art sports facility.

"We have the $400 million. We really would like $800 million. That’s why people are talking about gambling, which I’m neutral on, but it’s an option. It would generate revenue for our state.”

The Gaming Working Group would include “one representative of Native Hawaiian culture,” one individual “with experience in social services concerning behavioral addictions,” along with members from the Department of Business, Economic Development, and Tourism, Department of Law Enforcement, and Department of Taxation. 

If SB891 is passed, the organization will create a detailed gaming tourism policy framework, which will include a potential distribution of gaming taxes for the Aloha Stadium Entertainment District. 

 

Hawaii's Link to Vegas 

While the Gaming Working Group bill is gaining support in the Hawaii Legislature, the legislative body has declined to approve gaming laws for many years. An attempt earlier this year to make sports betting legal passed through the House but stalled in the Senate. A proposal to introduce casinos to the islands also did not succeed. 

Lawmakers oppose gambling for different reasons, but they frequently argue that Hawaiians are susceptible to addiction, and legalizing gambling would exacerbate behavioral issues. 

Legislators and casinos in Nevada are perfectly okay with Hawaii keeping its prohibition on gambling. Las Vegas serves as a significant tourist spot for Hawaiians, with Sin City often referred to as Hawaii’s “Ninth Island.” 

The California Hotel Casino — known as The Cal to locals — was key in the Hawaii-to-Las Vegas connection. Established and inaugurated in 1975 by Sam Boyd, The Cal, despite its name, showcases Hawaiian design features. Boyd adopted the aesthetic after the Las Vegas downtown property faced challenges in its initial years. 

In his 2008 book discussing the history of The Cal, William Boyd, son of Sam, revealed that the casino was originally intended to attract gamblers from California. 

“We were struggling. One day my dad said to me, ‘You know, we’re going to need a niche market, and that’s going to be Hawaii,'” Boyd wrote.