H.B. NO.














relating to gambling offenses.





     SECTION 1.  The legislature finds that Hawaii's gambling laws are being circumvented by a recent trend in which participants make purchases of goods or services that entitle the purchaser to participate in gaming activities on machines that offer payouts and otherwise constitute gambling.  The participant earns more credits or plays each time money is spent or deposited into the machine.  Establishments that promote these activities claim that the activities do not constitute gambling.  The legislature disagrees.  However, law enforcement has found that participants, and even employees of the establishments that provide the machines and activities, are unaware of, or completely disregard, the purchased goods or services and proceed directly to the gaming activity.  Hence, it is clear that the intent of these establishments and machines is to promote gambling.

     The purpose of this Act is to amend chapter 712, Hawaii Revised Statutes, to clarify the gambling laws to provide that gambling activities offered incident to the purchase of goods or services constitute gambling.

     SECTION 2.  Section 712-1220, Hawaii Revised Statutes, is amended by amending the definitions of "gambling", "gambling device", and "something of value" to read:

     "(4)  "Gambling".  A person engages in gambling if he stakes or risks something of value upon the outcome of a contest of chance or a future contingent event not under his control or influence, upon an agreement or understanding that he or someone else will receive something of value in the event of a certain outcome.  Gambling:

    (a)   Includes the use of any gambling device that is offered incident to the purchase of other goods or services, at no additional charge;

    (b)   But does not include bona fide business transactions valid under the law of contracts, including but not limited to contracts for the purchase or sale at a future date of securities or commodities, and agreements to compensate for loss caused by the happening of chance, including but not limited to contracts of indemnity or guaranty and life, health, or accident insurance.

     (5)  "Gambling device" means any device, machine, paraphernalia, or equipment that is [used]:

    (a)   Used or usable in the playing phases of any gambling activity, whether that activity consists of gambling between persons or gambling by a person involving the playing of a machine[.  However,]; or

    (b)   Available to play or operate a contest of chance upon payment of something of value, including the purchase of goods or services incidental to play or operation of the machine, and which may deliver or entitle the person playing or operating the machine to a payout of anything of value, whether the payout is made automatically by the machine or in any other manner;

provided that lottery tickets and other items used in the playing phases of lottery schemes are not gambling devices within this definition.

     (11)  "Something of value" means any money or property, any token, object, or article exchangeable for money or property, or any purchase of goods or services that entitles a person to participate in a gambling scheme or to use a gambling device, or any form of credit or promise directly or indirectly contemplating transfer of money or property or of any interest therein, or involving extension of a service or entertainment."

     SECTION 3.  This Act does not affect rights and duties that matured, penalties that were incurred, and proceedings that were begun before its effective date.

     SECTION 4.  Statutory material to be repealed is bracketed and stricken.  New statutory material is underscored.

     SECTION 5.  This Act shall take effect upon its approval.








Report Title:

Gambling Machines and Devices; Gambling Activities Offered Incident to Purchase of Goods or Services



Amends definitions in the gambling laws to address gambling activities offered incident to the purchase of goods or services.


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