THE SENATE	S.B. NO.	2032
TWENTY-SIXTH LEGISLATURE, 2012
STATE OF HAWAII

A BILL FOR AN ACT

relating to gambling.

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

§   -1  Definitions.  As used in this chapter:

     "Customer" means a person who partakes in slot machine gambling or video poker gambling machine games; provided that if a gambling establishment is located in a hotel, the customer shall be a registered guest of the hotel.

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

     "Gambling establishment" means a site on which slot machine gambling and video poker gambling machines are permitted, pursuant to section    -2.

     "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.

§   -2  Slot machine gambling and video poker gambling machines allowed in gambling establishments; license.  (a)  Slot machine gambling and video poker gambling machines shall be allowed in gambling establishments, subject to subsection (b).  Part III of chapter 712 shall not apply to this chapter.

     (b)  No gambling establishment shall allow slot machine gambling, video poker gambling machines, or both, unless the gambling establishment holds a special slot machine license issued by the county in which the gambling establishment is located.  No county shall refuse to issue a special slot machine license on the grounds of opposition to gambling in general.

     (c)  The State, through the department of budget and finance, and a county issuing special slot machine licenses pursuant to this section, through its appropriate department, may establish an administrative fee for expenses to issue a license under this section.

     (d)  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.

§   -3  Locations; machine types.  (a) Gambling establishments shall be limited to:

     (1)  Hotels in urban areas zoned resort; and

     (2)  Security areas within international airports,

located in the county that issued the special slot machine license.  Any gambling that occurs in a gambling establishment shall not be visible from the street.

     (b)  Only progressive slot machines, traditional (off line) slot machines, or both, may be used in a gaming establishment; 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.

§   -4  Advertising prohibited.  It shall be unlawful to publish, broadcast, or otherwise disseminate within this State, advertising for or on behalf of any gambling establishment.

§   -5  Taxation.  Gambling establishments that permit slot machine gambling or video poker gambling machines, or both, and customers, as defined in section    -1, shall be subject to chapter 235 for income taxes realized from slot machine gambling and video poker gambling machines.

§   -6  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; 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.

     §   -7  Records; inspection.  A gambling establishment shall hold a special slot machine license under section    -3 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 as follows:

     "(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.  Statutory material to be repealed is bracketed and stricken.  New statutory material is underscored.

     SECTION 4.  This Act shall take effect on July 1, 2012.

INTRODUCED BY:

_____________________________

Report Title:

Gambling; Slot Machines; Video Poker; Counties

Description:

Legalizes slot machine gambling and video poker gambling machines in gambling establishments located in hotels in urban areas zoned resort and security areas within international airports located in a county with a resident population greater than 500,000; restricts gambling in a hotel to registered guests of the hotel; requires gambling establishments to hold a special slot machine license issued by the county in which they are located as a condition precedent to allowing slot machines or video poker gambling machines on its premises; prohibits advertising the gambling establishment; requires an unspecified portion of the revenues payable to the State to be expended for the department of education and the department of human services.

The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.