Gambling with Paradise

The Hawai`i Appleseed Center for Law and Economic Justice has released a report entitled Gambling With Paradise: The Effect of Gambling on Low-Income Individuals, Families, and Communities. Click here to read the full report.

For years, the gaming lobby has pushed hard to legalize gambling and this legislative session is no different. More than ten pro-gambling bills were introduced this session, including proposals for a lottery, a Waikiki casino, shipboard gambling, and even a horse track. Although each of these bills failed, the push for legalized gambling continues. On Friday, March 22, 2013, the House Committee on Economic Development & Business will consider a resolution to create a gambling task force to examine bringing gambling to Hawai`i.

As detailed in the Gambling With Paradise report, the issue has already been exhaustively studied. Gambling poses significant risks to Hawai`i in general, and its low-income residents in particular:

  • Low-income people spend higher percentages of their income on gambling and lottery tickets than the rest of the population. The tax revenues generated by gambling would disproportionately come out of the pockets of those that can least afford it.
  • Gambling will likely cannibalize existing businesses. Gambling is unlikely to draw additional visitors given the expense of travel to Hawai`i and the abundance of cheaper, well-established gambling destinations. Money spent on gambling will be money that would have otherwise been spent on existing businesses. The introduction of gambling may even reduce overall tourism, as recognized in a resolution recently adopted by the Hawai`i Tourism Authority, expressing concern that legalized gambling runs counter to our Aloha Spirit and could in fact turn visitors away.
  • The presence of legalized gambling will, unsurprisingly, increase the number of Hawai‘i residents who gamble. Individuals who live within ten miles of a casino have more than twice the rate of pathological or problem gambling as those who live further away. Excessive gambling is associated with a variety of costly social problems, including job loss, substance abuse, crime, divorce, child abuse and neglect, domestic violence, and homelessness.
  • Casinos have been shown empirically to increase the rates of serious crime including rape, robbery, aggravated assault, burglary, larceny, and auto theft.
  • Casino gambling can harm our economic well-being and is estimated to cause up to $289 in social costs for every $46 of economic benefit.

In spite of these well-documented problems, states throughout the nation have succumbed to the allure of big revenue projections from gambling, only to find them to be grossly overestimated. Friday’s hearing on the gambling task force resolution will determine whether Hawai`i will start heading down the same path.

Click here to read the full report.

To view our one-page FAQ, "Gambling with Aloha," click here.

In The News

The Atlantic, Atlantic City's incredibly bad gamble on the Revel Casino, May 9, 2013

Hawaii Reporter, Report raises risks of gambling in Hawai`i while gaming proponents continue to push gambling in the legislature, March 21, 2013

HANO Public Policy News, Hawaii Appleseed Opposes Legalized Gambling in Hawaii, February 21, 2013

Honolulu Civil Beat: Op-Ed, Gambling with Paradise, March 6, 2012

Honolulu Civil Beat: Hawaii Money Blog article Study Claims Casinos, Lotteries ‘Bad Bets’ for Hawaii, March 2, 2012

On February 7, 2013, Insights on PBS Hawaii did a show on legalized gambling. View the entire show below.

Having trouble viewing the video above? Click here to view it on YouTube.