RELATING TO GAMING.

HB1945

HOUSE OF REPRESENTATIVES

H.B. NO.

1945

THIRTY-THIRD LEGISLATURE, 2026

STATE OF HAWAII

A BILL FOR AN ACT

relating
to gaming
.

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

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SECTION
1.
�
The Hawaii Revised Statutes is
amended by adding a new chapter to be appropriately designated and to read as
follows:

"
CHAPTER

GAMING ON CRUISE SHIPS

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� -1
�
Definitions.
�
As used in this chapter, unless the context
otherwise requires:

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"Adjusted
gross receipts" means the gross receipts less winnings paid to wagerers.

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"Cruise
ship" means an oceangoing passenger ship that weighs over 70,000 gross tonnes;
is used for recreational and leisure voyages that last over one hundred hours;
includes onboard amenities, attractions, activities, and entertainment options
for passengers; and charges a fee for and provides cruise ship cabins to
passengers.

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"Cruise
ship cabin" means an accommodation or a living quarter on a cruise ship
that is provided to a passenger.

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"Department"
means the department of commerce and consumer affairs.

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"Docked"
or "docking" means the process of bringing a cruise ship alongside a
dock for the purpose of embarking and disembarking passengers.

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"Gaming
on cruise ships" means the operation of games aboard a cruise ship
pursuant to this chapter, including baccarat, twenty-one, poker, craps, slot
machine, video game of chance, roulette wheel, klondike table, punch-board,
faro layout, keno layout, numbers ticket, push card, jar ticket, pull tab, or
other table game of chance.

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"Gross
receipts" means the total amount of money wagered or exchanged for the
purchase of chips, tokens, or electronic cards by passengers on a cruise ship.

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� -2
�
Gaming on cruise ships; authorized.
�
(a)
�

Gaming operations on cruise ships and the system of wagering
incorporated therein, as defined in this chapter, are authorized only to the
extent that they are carried out in accordance with this chapter.

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(b)
�
Gaming on cruise ships authorized pursuant to
this chapter may be conducted while docked at a state harbor or while traveling
within any state waters; provided that:

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(1)
�
Cruise ships may conduct gaming operations while
docked at a state harbor no more than one hour prior to departure from the dock;
and

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(2)
�
Cruise ships shall cease all gaming operations
within one hour after docking at a state harbor.

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� -3
�
Conduct of gaming on cruise ships.
�
Gaming on cruise ships shall be
permitted while a cruise ship is docked at a state harbor or while the cruise
ship is traveling in state waters
, subject to the following
requirements:

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(1)
�
The cruise ship shall comply fully with 46
United States Code section 55102;

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(2)
�
The cruise ship shall comply with the
requirements of section -2(b)(1) and (2);

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(3)
�
Minimum and
maximum wagers on games shall be set by the owner or operator of the cruise
ship;

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(4)
�
Wagers may be
received only from a passenger present on a cruise ship.
�
No passenger present on a cruise ship shall
place or attempt to place a wager on behalf of another person who is not
present on the cruise ship;

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(
5)
�
Wagering shall not
be conducted with money or other negotiable currency, except for wagering on
slot machines;

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(6)
�
A person under the
age of twenty-one shall not be permitted on an area of a cruise ship where
gaming is being conducted, except for a person at least eighteen years of age
who is an employee of the casino on a cruise ship.
�
No cruise ship employee under the age of twenty-one
shall perform any function involved in gaming by the patrons.
�
No person under the age of twenty-one shall
be permitted to make a wager under this chapter;

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(7)
�
All tokens, chips,
or electronic cards used to make wagers shall be purchased aboard the cruise
ship.
�
The tokens, chips, or electronic
cards may be purchased by means of an agreement under which the owner or
operator of a cruise ship extends credit to a cruise ship passenger.
�
The tokens, chips, or electronic cards may be
used while aboard the cruise ship only for the purpose of making wagers on
authorized games; and

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(8)
�
Any additional ru
les
adopted by the department pursuant to chapter 91.

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� -4
�
Wagering tax; rate; distribution.
�
A wagering tax shall be imposed on the
adjusted gross receipts received from games authorized under this chapter at
the rate of twenty per cent.
�
The tax
imposed by this section shall be paid by the owner or operator of the cruise
ship to the department of taxation no later than fourteen days following the
last day of each month in which the wagers were made and shall be deposited
into the general fund of the State.
�
The
wagering tax imposed by this section shall be in lieu of all other state taxes on
gross or adjusted gross receipts, except income taxes, including taxes levied
under chapters 237 and 239.

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� -5
�
Records; information.
�
(a)
�
An
owner or operator of a cruise ship shall keep books and records in a manner
that clearly shows:

����
(1)
�
The total amount
of gross receipts from the operations of the cruise ship casino; and

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(2)
�
The total amount
of the adjusted gross receipts from the operations of the cruise ship casino.

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(b)
�
The cruise ship owner shall furnish to the
department reports and information as the department may require for purposes
of determining the wagering tax under section -4.

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� -6
�
Prohibited activities; penalty.
�
(a)
�
A
person shall be guilty of a misdemeanor for any of the following:

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(1)
�
Intentionally
conducting gaming on a cruise ship other than in the manner authorized under
this chapter;

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(2)
�
Knowingly
permitting a person under twenty-one years of age to make a wager on a cruise
ship; or

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(3)
�
Knowingly
violating section -3(6).

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(b)
�
A person wagering or accepting a wager at any
location outside a cruise ship shall be subject to the penalties in part III of
chapter 712.

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(c)
�
A person shall be guilty of a class C felony
if the person does any of the following:

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(1)
�
Cheats at a game
in a cruise ship casino, including:

���������
(A)
�
Altering or misrepresenting the outcome of a
game on which wagers have been made after the outcome is made sure but before
it is revealed to the players;

���������
(B)
�
Placing a bet after acquiring knowledge, not
available to all players, of the outcome of a game that is subject of the bet
or to aid a person in acquiring the knowledge for the purpose of placing a bet
contingent on that outcome; or

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(C)
�
Using counterfeit
chips or tokens; and

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(2)
�
Claims, collects,
or takes, or attempts to claim, collect, or take, money or anything of value in
or from a game played in a cruise ship casino, with intent to defraud, without
having made a wager contingent on winning the game or taking an amount of money
or thing of value of greater value than the amount won.

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(d)
�
Except as provided in section 712-1222.5(3),
any cruise ship used for the conduct of gaming on cruise ships in violation of
section -3, shall be subject to section 712-1222.5.

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� -7
�
Prohibited activities; civil penalties.
�
Any person who conducts gaming on cruise
ships in violation of this chapter, in addition to other penalties provided,
shall be subject to a civil penalty equal to the amount of gross receipts
derived from wagering, whether unauthorized or authorized, conducted on that
day.

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� -8
�
Rules.
�

The department shall adopt rules pursuant to chapter 91 to implement
this chapter."

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SECTION
2.
�
Chapter 712, Hawaii Revised Statutes,
is amended by adding a new section to part III to be appropriately designated
and to read as follows:

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"
�712-
�
Gaming on cruise ships; exempted.
�
This
part shall not apply to gaming on cruise ships as authorized under chapter
.
"

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SECTION
3.
�
Section 712-1231, Hawaii Revised
Statutes, is amended by amending subsection (a) to read as follows:

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"(a)
�
Definition.
�

"Social gambling" means gambling in which all of the following
conditions are present:

����
(1)
�
Players compete on equal terms with each
other; [
and
]

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(2)
�
No player receives, or becomes entitled to
receive, anything of value or any profit, directly or indirectly, other than
the player's personal gambling winnings; [
and
]

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(3)
�
No other person, corporation, unincorporated
association, or entity receives or becomes entitled to receive, anything of
value or any profit, directly or indirectly, from any source, including but not
limited to permitting the use of premises, supplying refreshments, food,
drinks, service, lodging or entertainment; [
and
]

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(4)
�
It is not conducted or played in or at a
hotel, motel,
cruise ship pursuant to chapter ,
bar,
nightclub, cocktail lounge, restaurant, massage parlor, billiard parlor, or any
business establishment of any kind, public parks, public buildings, public
beaches, school grounds, churches or any other public area; [
and
]

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(5)
�
None of the players is below the age of
majority; and

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(6)
�
The gambling activity is not bookmaking."

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SECTION
4.
�
The department of commerce and
consumer affairs shall submit an implementation plan for gaming on cruise ships
established pursuant to section 1 of this Act, including any proposed
legislation, to the legislature no later than twenty days prior to the
convening of the regular session of 2027.

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SECTION
5.
�
This Act does not affect rights and
duties that matured, penalties that were incurred, and proceedings that were
begun before its effective date.

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SECTION 6.
�
New statutory material is underscored.

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SECTION
7.
�
This Act shall take effect upon its
approval; provided that section 1 of this Act shall take effect on August 1,
2027.

INTRODUCED BY:

_____________________________

Report Title:

Gaming on
Cruise Ships; Authorization; Wagering Tax; Department of Commerce and Consumer
Affairs; Report

Description:

Beginning
8/1/2027, authorizes gaming on cruise ships while a cruise ship is traveling
within any state waters or for specified times while docked at a state harbor.
�
Imposes a twenty per cent wagering tax on the
adjusted gross receipts derived from gaming on cruise ships.
�
Requires the Department of Commerce and
Consumer Affairs to report to the Legislature.

The summary description
of legislation appearing on this page is for informational purposes only and is
not legislation or evidence of legislative intent.