“They turn out to be really large numbers that can really benefit in funding essential services for the state of Hawaii,” said Melissa Riahei, executive vice president and general counsel for USDG.
According to a power point presentation being shown to state lawmakers, projected revenues for online poker alone would reach $19.6 million in the first year, with the state retaining $2.5 million as profit. By the fifth year estimated revenues balloon to $103.9 million with $78.8 million set aside for the state.
“It is a very significant sum,” said Riahei. “What we were doing is basically just informing the senators and the representatives of what’s going on across the country right now in the digital gaming world and what different states are doing.”
The push for state sponsored or state approved online gambling web sites comes after a December 23 ruling by the U.S. Justice Department that said the federal Wire Act of 1961 only applies to sports betting. The new interpretation opened the door for state governments to provide intrastate gambling on the internet.
“It was a monumental decision that was issued and has a huge impact on the state’s ability to no longer be handcuffed and be able to tap into that revenue generation potential,” explained Riahei.
Although a new Council on Revenues projection shows Hawaii’s state government operating at a deficit of more than $312 million by fiscal year 2016, many lawmakers are still not sold on the idea of internet gaming.
Even Sen. Donna Mercado Kim, who chairs the Ways and Means Committee and supports placing slot machines and video poker games in Waikiki hotels, has concerns about what gambling on the web would mean to Hawaii.
“While we need the money we have to look at where we’re getting it from and on whose backs are we’re going to put it on,” she said. “Everything’s so new that I think we have to do a lot more research on it and move cautiously.”
Two bills introduced by Mercado Kim that would have allowed slots and video poker in Waikiki hotels failed to make it out of committee in 2009 and 2011.
The anti-gambling lobby remains strong in the Aloha State despite financial difficulties in the past few years that has resulted in furloughs for public workers, budget cuts and tax increases.
“Over the years we’ve looked at gambling propositions every session and there has not been the desire or the votes here at the Legislature to pass any gambling measures,” said Sen. Will Espero, chair of the Public Safety and Military Affairs Committee.
“With gambling and what it incites, I think I’m very cautious about how that would impact families and affect the impoverishment of more people,” added Sen. Jill Tokuda, chair of the Higher Education Committee.
Still, proponents of online gambling say it’s likely to take place in Hawaii regardless of whether or not the state makes it legal.
“If the states don’t move forward in doing this, it is very likely that other illegal sites will pop up here and there and take that revenue potential,” Riahei told Khon2. “There’s a vacuum right now, poker players want to be playing,”
On April 15 of last year, the Justice Department shut down three online poker web sites, accusing operators of money laundering, fraud, and violating the 2006 Unlawful Internet Gambling Enforcement Act. The DOJ action against PokerStars, Full Tilt Poker and Absolute Poker devastated the online poker industry as well as millions of players.
Donalyn Dela Cruz, a spokesperson for Hawaii Gov. Neil Abercrombie, said Tuesday the governor would entertain any gambling bill that crosses his desk.
“Whatever is formulated and it actually survives the session and it gets to the governor’s desk, then he’ll look at it.”
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See the original article at: KHON2 Local News
