Is it possible for Las Vegas to lose its informal title as Hawaii’s “Ninth Island?” This might occur if a new bill in Hawaii is approved.
This week, SB 935 was introduced by Sen. Stanley Chang (D). The bill proposes a prohibition on Nevada casinos advertising in Hawaii.
The bill details’ description says it all – Hawaii is targeting Nevada casinos.
Bans the broadcasting, televising, printed marketing, online distribution, or any other electronic communication of advertisements for Nevada hotels, resorts, or other recreational services that promote casinos or gambling devices licensed by the Nevada Gaming Commission within the state. Mandates a general excise tax of 30% on the gross income from arranging, providing, or selling within the state, vacation packages or other recreational services that promote non-prohibited gambling or gambling devices according to state law.
Similar to tourism boards worldwide, the Las Vegas Convention and Visitors Authority (LVCVA) often promotes in different states to attract tourists. But, this bill specifically targets one particular casino operator in Las Vegas.
Boyd Gaming customers and Hawaii
Many of Boyd Gaming’s Las Vegas clients come from Hawaii. This legislation is specifically aimed at Boyd Gaming and its Las Vegas establishments.
The bill provides details concerning the national casino operator, as follows:
In 2011, reports indicated that Boyd Gaming, a gaming corporation from Nevada, accrued approximately $600 million annually from Hawaii. In addition, the 2021 annual investor report from Boyd Gaming emphasized that over half of the room nights sold at The California, the Fremont, and Main Street Station were purchased by Hawaiian customers. They warned that a reduction in spending by this market could negatively impact their business and financial status.
Boyd Travel is a widely used service amongst Hawaiian gamblers planning to visit Las Vegas. It allows customers to directly book hotel and airfare packages via Boyd Gaming.
The California Hotel and Casino, located just off Fremont Street in downtown Las Vegas, attracts numerous visitors. These guests also patronize Main Street Station and the Fremont Hotel and Casino, both of which are Boyd casinos situated in downtown Las Vegas.
Boyd views the other Boyd casinos around Las Vegas as “local properties” for residents, and few visitors from Hawaii choose to stay there.
Hawaii may have bigger plans for gambling
Hawaii, alongside Utah, is one of two US states without any legal gambling. Over the years, there have been several efforts to legalize some kind of gambling in Hawaii.
Rep. John Mizuno talked about Hawaii’s financial loss to Las Vegas in January, due to residents leaving the state to gamble. This was expressed in an interview with KHON TV station.
Given that residents of Hawaii spend a billion dollars annually in Las Vegas, Nevada, I believe it’s worth discussing a bill for sports and card gaming.
He further explained that he would prefer to keep the money that is currently being spent in Las Vegas within Hawaii.
“Why is it that 48 states have legalized gaming, yet so many people from Hawaii are making frequent trips to Las Vegas? From my experience, those who enjoy these Las Vegas trips are primarily seniors, not law breakers. I believe we need to discuss ways to keep our local money within our local economy.”
Numerous municipalities prioritize keeping money within the local economy. It’s possible that Hawaii may tackle the core of this issue by legalizing casino gambling and sports betting for its inhabitants.
Otherwise, targeting other states that offer the same hobbies enjoyed by Hawaiians seems harmful to its residents.