Isn’t it time to take another look at legalizing at least some forms of gambling?
In several recent posts, I’ve commented on gambling arrests during HPD raids on illegal game rooms. Just in the couple of months or so since I started watching, it’s clear that some locations have been raided repeatedly, apparently with little in the way of lasting results. A couple of people are arrested and charged with promotion of gambling, some machines are seized, and the customers move on to another conveniently located operation. There seems to be agreement that these game rooms are ubiquitous and pretty easy to find, if you’re looking. Of course, most of these seem to be neighborhood businesses, most pretty low rent, based on the few photos released by HPD. I wonder about the high roller games, like the ones that operated as casinos in at least a couple of Kapiolani-area condominiums some years ago, where well-dressed Asian visitors would be dropped off and then escorted into elevators by large security staff and delivered to a luxury penthouse apartment. Do I believe that these have disappeared? Perhaps temporarily, with the collapse of Asian tourism during the pandemic, but I’m sure someone out there is just waiting for the right time to jump back in to service this market.
I can draw some conclusions. There is clearly a market for gambling at various price points, from the corner game room to the high priced version more resembling a casino. Equally clearly, there isn’t any great stigma associated with gambling in Hawaii. It’s generally accepted, whether it involves traveling to Vegas or walking into one of these movable feasts.
Would there be an increase in crime if gambling were legalized? Let’ start with crime associated with the current state of affairs. Crimes apart from the gambling itself, that is? Well, start with this. By refusing any form of legal gambling, Hawaii has given a gift to organized crime by allowing gambling to remain a big part of its financial base. Profits from gambling can then fuel other crime ventures. There are violent crimes associated with game rooms, but those appear to primarily be the result of competition between rival groups vying for market share or territory, or because illegal gambling games make for attractive places to rob because those involved are less likely to report their losses to the police. And, of course, there is some strong-arm action when necessary to collect unpaid gambling debts.
Are there “problem” gamblers, individuals who repeatedly gamble away the wages they earn and end up behind on rent and other basics. I’m sure there are. But because illegal gambling is already so readily available, introducing legalized gambling doesn’t appear likely to make the situation much worse. And if I had racked up gambling debts, I would be much happier to find myself fending off bill collectors than getting a visit from a leg-breaker or two.
So, will there be some crime associated with gambling businesses? I imagine so. But tourism on its own attracts crime. You might say creates crime. Shopping centers “cause” crime by concentrating desirable goods, tempting targets in a small area.
I would guess gaming is likely no different.
Also, in the past, debate has focused around the idea of a mega-lottery or large, tourist-oriented casinos, and some have tried to get public support with proposals to offer a big pot of public funding created by casino or lottery revenues. I think that complicates the discussion, because even backers of legalized gambling may find reasons to oppose these kinds of grandiose plans. Why not start small?
There are cities that have different profiles than Las Vegas. We had visited Vancouver, BC, several times before we discovered there are several casinos in the city. Small, discrete, quiet.
In any case, my point is that it costs the public a lot to police illegal gambling. And the fact that gambling is illegal doesn’t seem to diminish public acceptance of the behavior. So why do we cling to the fiction that making gaming illegal somehow rids the community of gambling?
Time to move on, in my view.
Back in 1987, the League of Women Voters produced a discussion paper reviewing the pros and cons of legalized gambling. It’s dated, but still useful in providing some context (“Should Hawaii Legalize Gambling? Facts and issues. A study by the League of Women Voters of Hawaii. June 1997“)
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WHOA! Juicy post.
Let me start off by saying that I agree with your general sentiment of stop spending precious law enforcement resources on busting illegal gaming rooms, etc. at the expense of more serious crimes only to see the same illegal gaming enterprises to pop up a few months later after being busted by the cops. So point taken (and how very Libertarian sounding of you:)
On the mainland there is legal gambling “light” in the form of card rooms, with games like blackjack, three-card poker, baccarat and pai gow poker, but instead of the house acting as the bank, players do. In the lower-income parts of town these card rooms are well, ghetto, but legal and mostly safe like any other bar in that neighborhood. But in higher income or touristy areas new card rooms are appearing very tastefully done, with nice bars and dining venues attached. Better clientele and lucrative tax revenue. I think Hawaii should give legal card rooms a chance.
As for Indian style Casinos, doubt Hawaii is big enough to support one.
I’m curious, Michael, as to your use of the words “well, ghetto.” What were you getting at?
“Ghetto” is commonly used as an adjective, mostly by younger folks, in reference to nouns regarded as scruffy, in poor taste, of low value, rundown, or tacky.
What were YOU getting at?
Hear hear!!
Thanks for the insight. The word “ghetto” has a long and complex history. I’m grateful for information on how the younger generation is using it!
Geeee could this be another source of in come for the state of Hawaii?
LV lobbyists will work extra hard NOT to let this happen back in our state.
We’ve been sending our money out of state for decades and our residents are following the money outta here.
Start with a lottery for the state. Go from there.
Agreed! $400m shortfall would be better made up by gambling income than fining outdoor, non-maskers. Let’s do something smart for the state. And legalize prostitution while at it.
Legalized gambling has been opposed by organized crime that controls Hawaii.
Efforts to allow even limited gaming at the airport to ticketed passengers only have failed.
Maybe as a last ditch effort to save RAIL, we may allow gambling on “Steel Wheal Rail Trains Only”?
I’m assuming we don’t have any form of gambling here (not even a lotto!) mostly because of the Las Vegas lobbyists, Hawaiian Airlines and their paid ownership of our lily livered legislators?
I can’t buy the excuse of the potential “moral decay” it will cost society anymore. You want “moral decay”? Just look at the recent sentences on the disgraced ex police chief and his wife!
As an aside, Hong Kong has open legalized gambling in the form of the HK Jockey Club (which allegedly serves charities) monopoly and yet they also have a serious problem with illegal, triad run gambling operations. Humans are just pathetically weak.
The cost of policing illegal gaming establishments would not go away. The legitimate operations would eventually compile a list of banned individuals for various reasons (cheating, not paying, and gambling addiction) which would then be serviced by the illegal establishments.
I’m not saying legalization is a bad idea. Net net you will generate more tax revenue, and some people will be slightly worse off for it. Some of the uncles and aunties that go 6 times a year to Vegas will wind up losing their homes.
Of you are going to Vegas six times a year, aren’t you already spending mad amounts of cash to fuel your habit? It’s just that a lot of it goes to the airlines and hotels. if instead you spend all that money at a local game room, it’s a break even proposition.
The folks that will be negatively impacted are the ones that’s can’t afford to travel but don’t want to patronize an illegal establishment locally.
There are interesting assumptions so let’s start with this: how many people in your network go to the illegal gambling places, whether these are the upscale or low-rent kind?
Designating gambling as illegal means that crime network associated with it will have the kinds of characters who risk the consequences, whether that is jail time or confiscation of property.
Having legal gaming doesn’t make me think of less law enforcement – it actually makes me envision having more resources to ensure legit establishments follow the regulations that are established. Casinos, for instance, whether they are legal or illegal can help increase the scale of money laundering, for instance. Legal gaming is tailor made for helping ill-gotten money to mix with say, legit tourist or resident spending. I have no doubt that our travelers from Hawaii help do some of that money washing via Las Vegas.