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Question of the Day - 08 June 2016

Q:
Part of the story in the classic film Casablanca takes place in the small casino at Rick's Cafe ("I'm shocked! Shocked to find that gambling is going on here!" "Your winnings, sir."). There's a scene where a representative of the Deutsche Bank is refused entry. He replies. "I have been in every gambling room between Honolulu and Berlin ..." I know Las Vegas is referred to as Hawaii's ninth island, but has there ever been legalized gambling in Hawaii?
A:

Not since it achieved statehood in 1959. When Hawaii was a U.S. colony, wagering on horse races was permitted, but no longer. (The horse-racing industry had sputtered out in the late Forties.)

Hawaii's anti-gambling laws are matched only by Utah's in their stringency. In fact, Hawaii's are the strictest, since Utah at least allows pub poker, in which the host can profit by selling food and beverages to the players; not so in Hawaii. Only social poker is permitted and "as long as not committed in a hotel, motel, bar, nightclub, or any business establishment or public place." Gambling is forbidden on cruise ships as long as they are in Hawaiian waters -- casino "cruises to nowhere" are unknown in the Aloha State.

According to USA Today, "the state's natural attractions and its religious missionary history have instilled a sense among many that gambling shouldn't intrude on one of the nation's last holdouts against it." Also, the political will to legalize gambling has perceptibly ebbed in the last four years.

Hawaii does not even have a state lottery, let alone participation in interstate lotteries. And forget about charitable raffles and bingo: They're outlawed, too. Gambling in Hawaii is defined thusly: "A person engages in gambling if he stakes or risks something of value upon the outcome of a contest of chance or a future contingent event not under his control or influence, upon an agreement or understanding that he or someone else will receive something of value in the event of a certain outcome."

Bills to bring gambling to the 50th state have a 100 percent mortality rate in the state legislature. In 2010, bills to study casino gambling and establish a lottery died in committee. Two years later, there was an attempt to legislate a study of online poker, but that was quickly choked off. During Gov. Linda Lingle's tenure (2002-2010), lawmakers proposed a one-year "test" casino, another idea with no traction. It would be unfeasible, from a business standpoint, too: Any casino that had to make a total return on invested capital in only a year would be a quick-and-dirty thing indeed. You'd have to find a casino developer willing to gamble on the possible of losing quite a few million dollars for the privilege of having the first Hawaiian foothold.

This is not to say that illegal gambling does not flourish in Paradise. KaLeo.org, editorializing in favor of casino legalization, reported "cockfighting, sports betting, video gambling machines and backroom card games are available to locals and tourists willing to track them down … three Honolulu men were arrested for allegedly operating a gambling house that grossed $109,000 over three months, complete with seven gaming machines and a backroom baccarat table." In 2009, there were 65 gambling-related felony prosecutions and 40 gambling busts, according to the Honolulu Police Department.

Online gambling exists in something of a penumbra, in that it is not illegal to play but, according to GambleOnline.com, while there are no consequences for being caught playing they "are very strict in Hawaii and [penalties] apply to those who are caught operating illegal gambling business."

As in many other states, some operators try to get around the gambling ban by dint of low-stakes "Internet cafes," like this one, found operating with brazen openness in a strip mall. Patrons here are definitely not without risk. According to RealMoneyAction.com, "It’s a felony to promote any type of gambling or game of chance in Hawaii and it’s a misdemeanor to participate in any type of game of chance." It's not even legal to own a slot machine for your own private amusement. Ditto a roulette wheel or crap table.

As RealMoneyAction concludes, "Hawaii would be one of the best places to move to if you are addicted to gambling. Any place where you can’t even buy a lottery ticket is a place a gambling addict might be able to avoid temptation." "People in Hawaii like gambling, but they realize it's not a very good idea to legalize it," adds Hawaii Catholic Conference boss Dennis Araki, whose viewpoint continues to dovetail those of contemporary Hawaiians. Hence, Las Vegas' status as the "naughty" Ninth Island appears secure for some time to come.

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