THE SENATE	S.B. NO.	675
TWENTY-SEVENTH LEGISLATURE, 2013
STATE OF HAWAII

A BILL FOR AN ACT

 

 

relating to gambling offenses.

 

 

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

 

     SECTION 1.  The legislature finds that the Honolulu police department, as well as nationally recognized economists, have appeared before legislative hearings testifying to the fact that gambling is an addictive activity and has a serious negative impact on our community.

     There is a recent gambling scheme in which participants purchase items or services that then entitles them to participate in the gambling scheme.  The dollar amount a user spends to purchase items or services is directly related to the number of credits a user is allotted.  The more money spent or put into the machine, the more credits or plays a user is given.

     The legislature further finds that establishments promoting these activities claim that it is legal.  However, the Honolulu police department has found that users, and even employees of the establishments, are unaware of, or completely disregard the items or services purchased and proceed directly to the gambling portion of the device.  It is clear that the intent of these establishments and machines is to promote gambling.

     The purpose of this Act is to clarify what constitutes gambling, a gambling device, and something of value.

     SECTION 2.  Section 712-1220, Hawaii Revised Statutes, is amended as follows:

     1.  By amending the definition of "gambling" 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, 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."

     2.  By amending the definition of "gambling device" to read:

     "(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."

     3.  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, or any purchase of items or services that entitles a person to participate in a gambling scheme or 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.

 

INTRODUCED BY:	_____________________________

 

 

Report Title:

Gambling; Gambling Device; Something of Value

 

Description:

Clarifies the definitions of "gambling", "gambling device", and "something of value" to include the purchase of goods or services incidental to play or operation of a machine which may deliver or entitle the participant to a payout of value.

 

 

 

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