Bill Text: HI SB398 | 2014 | Regular Session | Introduced
Bill Title: Gambling; Gambling Devices; Sweepstakes Machines
Spectrum: Partisan Bill (Democrat 5-0)
Status: (Introduced - Dead) 2013-12-18 - Carried over to 2014 Regular Session. [SB398 Detail]
Download: Hawaii-2014-SB398-Introduced.html
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THE SENATE |
S.B. NO. |
398 |
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TWENTY-SEVENTH LEGISLATURE, 2013 |
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STATE OF HAWAII |
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A BILL FOR AN ACT
relating to Gambling.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
SECTION 1. The legislature finds that gambling, as defined in section 712-1220(4), Hawaii Revised Statutes, is composed of three necessary elements. First, a person must wager something of value. Second, the wager must be placed on the outcome of a contest of chance or a future contingent event that is not under the wagerer's control or influence. Finally, the wager must be made under conditions in which a payout is made if a specified outcome occurs.
Recently, across the nation, including in this State, a proliferation of electronic sweepstakes game machines have been designed to circumvent the spirit, if not the letter, of gambling laws by making opportunities to play contests of chance for prizes incidental to the purchase of goods or services. For example, a business may sell a phone card or internet time that, for no additional charge, affords the buyer an opportunity to play contests of chance on a machine that offers payouts. The cost of the card or internet time sometimes far exceeds what it would cost to buy the card or time if no play opportunity is included. Many of the contests of chance that may be played on these machines resemble games that are widely associated with gambling; but the businesses contend that use of the sweepstakes machines does not constitute gambling because the consumer's payment is for the purchase of other goods or services, not for the opportunity to use the machine, and therefore the consumer is not wagering anything of value for purposes of the gambling law. In fact, these businesses claim that they are merely offering a sweepstakes to promote their goods or services, even though it is often apparent that the purchases are primarily or solely made for the opportunity to play on a sweepstakes machine that replicates the gambling experience.
The legislature also finds that, now more than ever, the prohibition of gambling activities has become exceedingly difficult in light of a highly sophisticated and adaptable gaming industry that uses technology to exploit loopholes in the law. Electronic gaming machines can be quickly reprogrammed to modify gameplay and other features, which presents tremendous challenges to efforts to define prohibited activities under the gambling law. Hence, the effective crafting and enforcement of gambling prohibitions remains a constant and ever-evolving process.
The purpose of this Act is to strengthen gambling laws by addressing contests of chance played to win something of value where the wager consists of an incidental purchase of goods or services.
SECTION 2. Section 712-1220, Hawaii Revised Statutes, is amended as follows:
1. By amending the definitions of "gambling" and "gambling device" to read:
"(4) "Gambling". A person
engages in gambling if [he] the person stakes or risks something
of value upon the outcome of a contest of chance or a [future]
contingent event not under [his] the person's control or
influence, including an outcome that has already been determined or an event
that has already occurred but the outcome or event is unknown to the person,
upon an agreement or understanding that [he] the person or
someone else will receive something of value in the event of a certain
outcome. Gambling [does]:
(a) Includes the use of any gambling device that is offered incident to the purchase of other goods or services, at no additional charge; and
(b) 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 device, and that may deliver or entitle the person playing or operating the device to a payout of anything of value, whether the payout is made automatically by the device 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."
2. By amending the definition of "something of value" to read:
"(11) "Something of value" means any money or property, any token, object, or article exchangeable for money or property, any purchase of goods or services that entitles a person to participate in a gambling scheme or to play or operate 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.
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INTRODUCED BY: |
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Report Title:
Gambling; Gambling Devices; Sweepstakes Machines
Description:
Amends various definitions in the gambling law to address contests of chance played to win something of value where the wager consists of an incidental purchase of goods or services.
The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.
