STAND. COM. REP. NO. 2146

Honolulu, Hawaii

, 2025

RE: S.C.R. No. 121

S.D. 1

H.D. 1

Honorable Nadine K. Nakamura

Speaker, House of Representatives

Thirty-Third State Legislature

Regular Session of 2025

State of Hawaii

Madame:

Your Committee on Economic Development & Technology, to which was referred S.C.R. No. 121, S.D. 1, entitled:

"SENATE CONCURRENT RESOLUTION REQUESTING THE DEPARTMENT OF BUSINESS, ECONOMIC DEVELOPMENT, AND TOURISM TO CONVENE A TOURISM AND GAMING WORKING GROUP,"

begs leave to report as follows:

The purpose of this measure is to request the Department of Business, Economic Development, and Tourism to convene a Tourism and Gaming Working Group.

Your Committee received testimony in support of this measure from the Department of Business, Economic Development, and Tourism; Aloha Hālawa District Partners; Iron Workers Stabilization Fund; Boyd Gaming; and one individual. Your Committee received testimony in opposition to this measure from the Department of the Prosecuting Attorney of the City and County of Honolulu; HI Good Neighbor; Project Nehemiah Hawaii; Hawaiʻi Friends of Civil Rights; Nation of Hawaii; and numerous individuals. Your Committee received comments on this measure from the ʻAiea Community Association; Aliʻi Pauahi Hawaiian Civic Club; and two individuals.

Your Committee finds that legalizing gaming activities could help the State generate a new source of tax revenue and spur economic growth. Your Committee further finds that the process for legalizing and regulating gaming activities should be informed by a comprehensive policy framework and be subject to stakeholder participation. This measure encourages a coordinated effort to evaluate legislation related to gaming and examine how gaming activities could help support the State's tourism and economic development efforts.

Your Committee has amended this measure by:

(1) Requesting the working group to research gaming experiences and programs of legalized gambling in other states;

(2) Clarifying that the working group is requested to consider gaming legislation that has been considered by other states in addition to the Hawaii State Legislature;

(3) Requesting the working group to examine the potential for gaming activities onboard vessels operated within the exclusive economic zone;

(4) Clarifying that the comprehensive tourism gaming policy framework should address certain costs associated with gaming;

(5) Changing the composition of the working group;

(6) Amending the list of recipients of certified copies of this measure; and

(7) Making technical, nonsubstantive amendments for the purposes of clarity, consistency, and style.

Your Committee notes the concerns raised in the Department of the Prosecuting Attorney of the City and County of Honolulu's testimony regarding the potential dangers of online gambling platforms.

As affirmed by the record of votes of the members of your Committee on Economic Development & Technology that is attached to this report, your Committee concurs with the intent and purpose of S.C.R. No. 121, S.D. 1, as amended herein, and recommends its adoption in the form attached hereto as S.C.R. No. 121, S.D. 1, H.D. 1.

Respectfully submitted on behalf of the members of the Committee on Economic Development & Technology,

____________________________

GREGGOR ILAGAN, Chair