Hawaii Bill Proposes Taxation for Vacation Gambling Trips

Many residents from the state like to take trips to locations that offer gambling entertainment primarily because the activity is illegal in Hawaii. One of the most popular locations is the gambling capital of the world, Las Vegas. Yet, while many enjoy the activity and it brings profits for operators involved in the organization process, a new proposal will likely make gambling trips more expensive.

Sen. Stanley Chang recently introduced a bill that sought to ban the advertising of vacation gambling tours and at the same time roll out a tax rate for those activities, a recent report released by Hawaii News Now revealed. The bill proposes to tax the activity at a 30% rate and use the proceeds to combat problem gambling and provide treatment and support for people affected by gambling addiction in the state.

The part of the proposal that calls to ban the advertisement of gambling trips did not make it during the Senate Consumer Protection Committee meeting on Thursday. Lawmakers ultimately decided that such prohibition would infringe on the freedom of speech, thus repealing the gambling trips ads ban part.

Gambling Trips Tax to Help Problem Gambling Treatment

According to Sen. Chang, although there is no gambling available in Hawaii, this doesn’t mean that there are no people suffering from gambling addiction. He explained that the bill seeks to contribute to problem gambling treatment. At the same time, Chang said that Hawaii is one of the only few states that doesn’t have any problem gambling treatment locations. According to him, such centers are critical and the new tax will be able to fund them.

“Hawaii is a non-gambling state, but that doesn’t mean that we don’t have a problem with gambling addiction. We’re one of the few states that don’t have any type of problem gambling treatment centers and I think this would be a great way to fund this critical social need.“

Sen. Stanley Chang

Although the proposal is yet to gain further traction, for the moment lawmakers have greenlighted it, without the part for the ban of gambling trip ads. Still, it is yet to be decided whether the tax rate would be 30% or that number would undergo changes.

The announcement comes at a time when lawmakers in Hawaii are making efforts toward legalizing gambling. There are a few proposals that call for the legalization of commercial gambling in the state currently. At the same time, lawmakers are also considering the possibility of legalizing sports betting as well.