Report Title:

Gambling; Slot Machines; Video Poker; Counties

 

Description:

Legalizes slot machine gambling and video poker gambling machines in designated resort areas and to security areas of international airports located in Honolulu.

 


HOUSE OF REPRESENTATIVES

H.B. NO.

1699

TWENTY-FIFTH LEGISLATURE, 2009

 

STATE OF HAWAII

 

 

 

 

 

A BILL FOR AN ACT

 

 

RELATING TO GAMING.

 

 

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

 


     SECTION 1.  The Hawaii Revised Statutes is amended by adding a new chapter to be appropriately designated and to read as follows:

"Chapter

SLOT MACHINE GAMBLING

     §   ‑A  Definitions.  As used in this chapter:

     "Customer" means a person who partakes in slot machine gambling or video poker gambling machine games.

     "Gambling" shall have the same meaning as in section 712‑1220.

     "Gambling establishment" means a specific location in the urban area of a county with a resident population greater than 500,000 that is designated by that county to permit slot machine gambling and video poker gambling machines.

     "Slot machine" means any mechanical, electrical, or other device, contrivance, or machine that, upon insertion of a coin, token, or similar object, or upon payment of any consideration, is available to play or operate, the play or operation of which, whether by reason of the skill of the operator in playing a gambling game which is presented for play by the machine or application of the element of chance, or both, may deliver or entitle the person playing or operating the machine to receive cash, premiums, merchandise, tokens, or anything of value, whether the payoff is made automatically from the machine or in any other manner.

     "Video poker gambling machine" means a type of slot machine where a player is typically dealt a five-card hand on the face of a video screen and is allowed to ask for one or more new cards, similar to draw poker.  The player may be awarded various winnings according to the value of the final hand.

     §   ‑B  Slot machine gambling and video poker gambling machines allowed in gambling establishment.  (a)  Slot machine gambling and video poker gambling machines shall be allowed in gambling establishments.

     (b)  The choice of slot machine shall be limited to progressive slot machines or traditional (off line) slot machines, or both; provided that the licensee shall indicate on every slot machine whether the machine is a progressive slot machine or a traditional (off line) slot machine.  Part III of chapter 712 shall not apply to this chapter.

     (c)  This chapter shall not be construed to legalize internet gambling, electronic bingo games, or other forms of gambling under part III of chapter 712 other than slot machine gambling and video poker gambling machines within gambling establishments.

     §   ‑C  Locations; license.  (a)  Gambling establishments shall be limited to hotels in urban areas zoned resort and security areas within international airports located in a county with a resident population greater than 500,000; and

     (b)  A gambling establishment shall hold a special slot machine license issued by the city and county of Honolulu as a condition precedent to allowing slot machine gambling or video poker gambling machines, or both, on its premises; provided that no county shall refuse to issue a special slot machine license on the grounds of opposition to gambling in general.

     The State, through the department of budget and finance, and a county with a resident population of 500,000 or greater, through its appropriate department, may establish an administrative fee for expenses to issue a license under this section.

     §   ‑D  Taxation.   Gambling establishments that permit slot machine gambling or video poker gambling machines, or both, and customers, as defined in section    ‑A, shall be subject to chapter 235 for income taxes realized from slot machine gambling and video poker gambling machines.

     §   ‑E  Division of proceeds.  The net amount, after expenses, derived by a gambling establishment from slot machine gambling and video poker gambling machines shall be divided as follows:

     (1)  Not more than       per cent of the net amount shall be retained by the gambling establishment as taxable income; and

     (2)  Not more than       per cent of the net amount shall be payable to the State, to be deposited into the general fund of the State; provided that the State may distribute a portion of the proceeds to the counties as provided by law; and provided further that the State shall expend a portion of the moneys derived under this paragraph as follows:

         (A)        per cent to the department of education; and

         (B)        per cent to the department of human services.

     §   ‑F  Records; inspection.  A gambling establishment shall hold a special slot machine license under section    -C and shall keep records of all slot machine gambling and video poker gambling machine operations for purposes of enforcement and taxation.  The records shall be deemed open to inspection and without notice by the state attorney general, county prosecutor, department of taxation, and appropriate county licensing authority."

     SECTION 2.  Section 712-1220, Hawaii Revised Statutes, is amended by amending the definition of "gambling" to read:

     "(4)  "Gambling".  A person engages in gambling if [he] the person stakes or risks something of value upon the outcome of a contest of chance or a future contingent event not under [his] the person's control or influence, upon an agreement or understanding that [he] the person or someone else will receive something of value in the event of a certain outcome.  Gambling does not include bona fide business transactions valid under the law of contracts, including but not limited to contracts for the purchase or sale at a future date of securities or commodities, and agreements to compensate for loss caused by the happening of chance, including but not limited to contracts of indemnity or guaranty and life, health, or accident insurance.  For purposes of this chapter, gambling shall not include slot machine gambling or video poker gambling machines as authorized under chapter    ."

     SECTION 3.  In codifying this Act, the revisor shall substitute appropriate section numbers for the letter designations used in section 1 of this Act.

     SECTION 4.  Statutory material to be repealed is bracketed and stricken.  New statutory material is underscored.

     SECTION 5.  This Act shall take effect on July 1, 2009.

 

INTRODUCED BY:

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