Love to gamble? Lawmakers want to tax those junkets to the 9th Island

That quick junket to the ninth island — or any other gambling location — could cost you a lot more under a proposal moving in the state Legislature.
Published: Feb. 9, 2023 at 5:25 PM HST|Updated: Feb. 9, 2023 at 8:10 PM HST
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HONOLULU (HawaiiNewsNow) - That quick junket to the Ninth Island — or any other gambling location — could cost you a lot more under a proposal moving in the state Legislature.

The bill introduced by state Sen. Stanley Chang would originally have banned all advertising of gambling-related tours to Las Vegas and imposed a 30% excise tax on gambling travel from Hawaii.

“Hawaii is a non-gambling state, but that doesn’t mean that we don’t have a problem with gambling addiction,” Chang said.

But the state Attorney General’s Office told the Senate Consumer Protection Committee on Thursday that because gambling in Vegas is legal, banning ads would violate the industry’s freedom of speech.

Hawaii’s biggest Vegas tour operator, Vacations Hawaii, asked that the bill be killed ”because of the negative economic ramifications to local businesses and jobs, as well as various constitutional concerns,” the company said, in written testimony.

Chang’s bill would tax any accommodations — including cruise ships — where casinos are involved.

He said revenue would go to address the impact of problem gaming.

“We’re one of the few states that don’t have any type of problem gambling treatment centers and I think this would be a great way to fund this critical social need,” Chang said.

Ray Cho, project Coordinator at the Center for Gambling Studies at the Rutgers School of Social Work, said he assisted Chang in drafting the legislation.

He told senators little is known about gambling addiction here.

But lawmakers say even without legal gambling here, Hawaii is paying the price of social problems caused by gaming addiction.

“We need to do a better job of even taking the temperature,” Cho said. “The Department of Health said it has no data on gambling addiction in Hawaii.”

Committee members voted to keep the tax alive to fund research and addiction programs, although they left the exact amount of the tax blank for future amendments.

At the Vacations Hawaii check-in for the afternoon Hawaiian Airlines flight to Vegas, where you might expect unanimous opposition, Ewa Beach resident Bert Adaro said he supported the idea.

“I am totally for it,” Adaro said. “I think it is going to help the island and people like me who love to gamble.”

But when HNN asked a group of Adaro’s traveling companions whether they thought a 30% tax on their trip was a good idea, we got a unified “no!”

The measure still faces multiple hearings before it could become law, and given it is a new concept facing legal challenges, chances of making it through the session and considered low.