HOUSE OF REPRESENTATIVES

H.B. NO.

123

TWENTY-SEVENTH LEGISLATURE, 2013

 

STATE OF HAWAII

 

 

 

 

 

 

A BILL FOR AN ACT

 

 

relating to gambling.

 

 

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

 

     SECTION 1.  Section 712-1220, Hawaii Revised Statutes, is amended to read as follows:

     "§712-1220  Definitions of terms in this part.  In this part, unless a different meaning plainly is required, the following definitions apply[.]:

     [(1)]  "Advance gambling activity".  A person "advances gambling activity" if [he] the person engages in conduct that materially aids any form of gambling activity.  Conduct of this nature includes but is not limited to conduct directed toward the creation or establishment of the particular game, contest, scheme, device, or activity involved, toward the acquisition or maintenance of premises, paraphernalia, equipment, or apparatus therefor, toward the solicitation or inducement of persons to participate therein, toward the actual conduct of the playing phases thereof, toward the arrangement of any of its financial or recording phases, or toward any other phase of its operation.  A person advances gambling activity if, having substantial proprietary control or other authoritative control over premises being used with [his] the person's knowledge for purposes of gambling activity, [he] the person permits that activity to occur or continue or makes no effort to prevent its occurrence or continuation.  A person advances gambling activity if [he] the person plays or participates in any form of gambling activity.

     [(2)]  "Bookmaking" means advancing gambling activity by accepting bets from members of the public upon the outcomes of future contingent events.

     [(3)]  "Contest of chance" means any contest, game, gaming scheme, or gaming device in which the outcome depends in a material degree upon an element of chance, notwithstanding that skill of the contestants may also be a factor therein.

     [(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.

     [(5)]  "Gambling device" means any device, machine, paraphernalia, or equipment that is used or usable in the playing phases of any gambling activity, whether that activity consists of gambling between persons or gambling by a person involving the playing of a machine.  The term includes any machine used to play sweepstakes that:

    (a)   Discharges:

         (i)  Any prize, including money, cash equivalent, debit card, merchandise credit card, or opportunities to enter a sweepstakes or play any other contest of chance, whether the payout is made automatically by the machine or in any other manner, and whether the discharge of the prize can be determined either at the beginning or at the end of play; or

        (ii)  Anything that may be exchanged for a prize; or

    (b)   Displays any symbol entitling any person to receive a prize.

However, the term does not include lottery tickets and other items used in the playing phases of lottery schemes [are not gambling devices within this definition].

   [(6)]  "Lottery" means a gambling scheme in which:

    (a)   The players pay or agree to pay something of value for chances, represented and differentiated by numbers or by combinations of numbers or by some other medium, one or more of which chances are to be designated the winning ones; and

    (b)   The winning chances are to be determined by a drawing or by some other method based on an element of chance; and

    (c)   The holders of the winning chances are to receive something of value.

     [(7)]  "Mutuel" means a form of lottery in which the winning chances or plays are not determined upon the basis of a drawing or other act on the part of persons conducting or connected with the scheme, but upon the basis of the outcome or outcomes of a future contingent event or events otherwise unrelated to the particular scheme.

     [(8)]  "Player" means a person who engages in gambling solely as a contestant or bettor.

     [(9)]  "Profit from gambling activity".  A person "profits from gambling activity" if [he] the person accepts or receives money or other property pursuant to an agreement or understanding with any other person whereby [he] the person participates or is to participate in the proceeds of gambling activity.

     [(10)]  "Social gambling" is defined in section 712-1231.

     [(11)]  "Something of value" means any money or property, any token, object, or article exchangeable for money or property, or any form of credit or promise directly or indirectly contemplating transfer of money or property or of any interest therein, or involving extension of a service or entertainment.  The term includes a sweepstakes ticket or other item that entitles the holder to a share or chance in a sweepstakes, whether the ticket or other item is obtained in conjunction with the purchase of goods or services or provided at no cost in limited quantities pursuant to the terms of the sweepstakes.

     "Sweepstakes" means any game, advertising scheme or plan, or other promotion that constitutes a contest of chance by which a person may enter to win or become eligible to receive any prize, the determination of which is based upon chance.  The term includes only those sweepstakes that an entrant can enter, play, or otherwise interact with using a gambling device furnished by the sweepstakes operator or an affiliate or person under contract with the operator, in an establishment controlled by, affiliated with, or contracting with the operator."

     SECTION 2.  Section 712-1221, Hawaii Revised Statutes, is amended to read as follows:

     "§712-1221  Promoting gambling in the first degree.  (1)  A person commits the offense of promoting gambling in the first degree if the person knowingly advances or profits from gambling activity by:

    (a)   Engaging in bookmaking to the extent that the person receives or accepts in any seven-day period more than five bets totaling more than $500; or

    (b)   Receiving in connection with a lottery, or mutuel scheme or enterprise, money or written records from a person other than a player whose chances or plays are represented by such money or records; [or]

    (c)   Receiving or having become due and payable in connection with a lottery, mutuel, or other gambling scheme or enterprise, more than $1,000 in any seven-day period played in the scheme or enterprise[.]; or

    (d)   Furnishing, as an operator, or as an affiliate or person under contract with the operator, any gambling device for use in gambling in an establishment controlled by, affiliated with, or contracting with the operator.

     (2)  Promoting gambling in the first degree is a class C felony[.]; provided that any person convicted under subsection (1)(d), in addition to any other penalties, shall be fined at least $5,000 per day of violation for each gambling machine made available for use at the establishment."

     SECTION 3.  This Act does not affect rights and duties that matured, penalties that were incurred, and proceedings that were begun before its effective date.

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

     SECTION 5.  This Act shall take effect upon its approval.

 

INTRODUCED BY:

_____________________________

 

 

 

 

Report Title:

Gambling Machines; Sweepstakes

 

Description:

Defines "sweepstakes". Amends the definition of "gambling device" and "something of value" to include the use of gambling devices to play sweepstakes.  Establishes a class C felony for furnishing any gambling device for use in gambling.

 

 

 

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