Hawaii Underground Gambling Hub Landlords To Face Penalties

Posted on: July 11, 2024, 01:49h. 

Last updated on: July 11, 2024, 01:49h.

Illegal gambling rooms in Hawaii remain a paramount problem on the island state, but Gov. Josh Green (D) and lawmakers hope to crack down on the illicit betting operations through a newly enacted law.

Green this week signed Senate Bill 2197, which expands the penalty structure for landlords who lease property to unsavory individuals who use their occupancies to run illegal gambling dens. The legislation, introduced in January by state Sen. President Ron Kouchi (D-Kauai), amends the definition of “advances gambling activity” to repeal language that had protected landlords against certain charges related to their tenants’ actions.

Under the previous law, landlords were immune from being prosecuted on advancing gambling activity charges unless they made “no effort to prevent” the occurrence or continuation of rogue gambling at their properties. The new law lends responsibility to property owners to ensure that their renters are not conducting illegal activities.

Landlords Put on Notice

Hawaii and Utah are the most restrictive gambling states and the only two states in the U.S. that do not allow commercial or tribal casinos, pari-mutuel wagering, a lottery, iGaming, or sports betting. Despite the prohibition on all forms of games of chance involving financial stakes, Hawaii’s rate of gambling addiction remains elevated compared with the rest of the nation.

Hawaii is a major feeder market for Las Vegas casinos. Those who can’t afford to fly to Southern Nevada have an abundance of underground gambling options where underground dens operate illegal slot devices and table games.

The perpetual problem for Hawaii law enforcement will ideally be lessened with harsher penalties for landlords who look the other way as to what’s going on inside their rentals and leased properties.

Illegal gambling establishments throughout the state — and perhaps most alarmingly in our residential neighborhoods — have become notorious for attracting and fostering violence, illicit drugs, sex trafficking, and other dangerous activity,” said Honolulu Prosecuting Attorney Steven Alm in a March letter to the Hawaii State Legislature regarding SB2197. “This is not a victimless crime, and it is not healthy for our communities.”

Alm said the former law effectively barred prosecutors from charging someone with a gambling offense if they made any effort whatsoever, including a verbal reprimand to a tenant or property manager, to stop the illegal gambling activities occurring on a property. Amending the law closes the loophole to allow prosecutors to go after landlords and put more responsibility on property owners.

Public Defenders Opposed Bill 

Hawaii’s Office of the Public Defender opposed SB2917 on grounds that it threatens passive partners of property owners who could be unaware of illegal gambling activities occurring at properties they have ownership positions.

Suppose a married couple owned a property in which the husband ran an unlawful gambling operation. While the wife knows about the operation and objects to the operation, she can do little to dissuade her husband and stop the activity,” a letter from the office read.  

“The new definition … allows prosecutors to go after her as well as her husband and the deleterious consequences that come with a criminal prosecution like civil asset forfeiture, suspension of voting rights, and immigration consequences would fall on the wife,” the opposition added.

The office conceded that “unlawful game rooms are prevalent” throughout the state and should be stopped, but SB2197 “takes aim at the wrong people and will do little to curb the gambling.”