The Hawaii State Senate introduced a new bill that would establish the first-ever state-owned sweepstakes casino in the United States. Both land-based betting and online casino gaming are illegal in the Aloha State.
SB 1507 Would Establish The Hawaii Lottery And Gaming Corporation To Oversee Sweepstakes Gaming
However, SB 1507, introduced by State Senate’s President Ron Kouchi, would allow social and free-to-play casino games with the purpose of providing the state with extra funds for social initiatives.
In January, the bill passed its first reading and was then sent to the Senate Committee on Economic Development and Tourism (EDT). Among the supporters is the Social and Promotional Games Association (SPGA).
With the creation of the Hawaii Lottery and Gaming Corporation (HLGC), the state is going to regulate its own sweepstakes casino while continuing to promote the state as a top tourist destination.
The HLGC will then partner with a social casino operator and make online casino games available to its residents, but also to players in other states where social casinos are legal.
Regulated Sweepstakes Platform Would Offer “Island-Themed Prizes” To Out-Of-State Players
More importantly, such a platform would offer “Hawaii-related prizes” to out-of-state players “for the purpose of attracting tourists and providing free exposure for Hawaii.”
According to SB 1507’s summary, the bill establishes the HLGC “for the purpose of conducting and regulating wagering and gaming in the State” and also “establishes the Lottery and Gaming Special Fund and allocates certain percentages of the fund to various community betterment purposes.”
Unlike Mississippi and Connecticut, two states that have introduced bills to ban sweepstakes casinos, Hawaii’s proposed legislation for the social sweepstakes market will help boost the state’s economy with island-themed merchandise.
Furthermore, SB 1507 would produce new revenue streams for Hawaii. The state expects a regulated market to create additional revenue source to support community programs.
The bill would also help with job growth in technology, gaming operations, and regulatory oversight. Hawaii’s bet on online sweepstakes casinos could set the standard for how other states deal with the free-to-play games.