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Committee defers bill to allow regulated cruise‑ship gaming amid enforcement and maritime questions
Summary
Lawmakers deferred HB1945 after testimony from DCCA, the Attorney General and prosecutors raising enforcement, jurisdiction and taxation questions; cruise‑line witnesses described onboard ID checks and monitoring but the committee sought the tourism and gaming working groupreport before moving forward.
The committee deferred HB1945, which would permit regulated gaming on cruise ships operating in Hawaiian waters, after agencies and community groups flagged drafting ambiguities and enforcement challenges.
Nidi Nando, director of the Department of Commerce & Consumer Affairs, said DCCA was opposed to being the regulator for a form of gaming outside their usual portfolio and noted the bill included no funding to build the highly specialized team that would be needed. "This is not something we believe should be placed with us," she said, urging that the tourism and gaming working group complete its work before the Legislature acts.
Deputy Attorney General Jordan Ching repeated the AGofficeposition that legalized gambling raises public‑health and safety issues and said the bill left key terms undefined (for example, the meaning of "passenger") and lacked clear age and identity verification standards. Prosecutors and public‑safety advocates warned that shipboard casinos could still harm local residents and normalize gambling expansion on land.
Representatives from Norwegian Cruise Line said onboard gaming systems accept cash or a ship account linked to a credit card but that ships already monitor play and can suspend accounts; the company said security and boarding rules mean only paying passengers can access gaming during port calls. Sandy Weir (Norwegian Cruise Line) said ships enforce multiple security checks and that the operator would not likely redesign itineraries to target short, gambling‑only voyages.
Testimony also raised tax and jurisdictional questions: speakers asked whether foreign‑flag ships would pay Hawaii taxes on wagers, how to determine adjusted gross receipts for wagering, and whether ships could exploit existing maritime or federal rules. Several members asked the Attorney General and DOTAX to provide legal and revenue analysis and recommended waiting for the tourism and gaming working group's final recommendations before acting.
The committeevoted to defer HB1945 to allow additional study and to avoid creating a regulatory regime before the working group completes its report.
