Gambling industry top-spending lobby here
By Johnny Brannon
Advertiser Staff Writer
Gambling interests spent more money trying to influence lawmakers in Hawai'i than any other industry over the past year, according to public records filed with the state Ethics Commission.
Since May 2000, casino developers and a gambling advocacy group spent at least $346,000 on lobbyists and materials promoting legalized gaming, representing a concerted push by the industry to gain a foothold in the state, records show.
One firm that is new to Hawai'i, the Hollywood Casino Corp., reported pumping more than $207,428 into lobbying efforts between May 2000 and February 2001 alone, dwarfing expenditures by industries that have traditionally spent the most here, such as labor unions, and insurance and medical associations.
By late yesterday, Hollywood Casino had yet to file its most recent lobbying disclosure statement, to cover the period between March 1 and April 30, which was due at the Ethics Commission by midnight.
Neither company officials nor their lobbyist, local attorney Eric Maehara, could be reached for comment.
Hollywood Casino is based in Dallas and operates glitzy movie memorabilia-themed casinos and hotels in Mississippi, Louisiana and Illinois, including two riverboat casinos. The company has total assets of more than $570 million, but lost more than $10 million during the three months that ended in March, according to records filed with the U.S. Securities and Exchange Commission.
The company reported paying Maehara $110,213 and spending more than $3,600 on entertainment, food and beverages. The remainder of the money went for unspecified fees and disbursements.
Two lawmakers who have expressed a strong interest in the subject of gambling said they were not familiar with Hollywood Casino's plans for Hawai'i.
Rep. Ed Case, D-23rd (Manoa), said all the money spent on lobbying would have no effect on his staunch opposition to gambling, but that he believed it would likely influence others.
"It has to have an effect," he said. "High expenditure lobbying has some effect on any legislative body, and you've got some members here who could perhaps go one way or another."
But Rep. Nathan Suzuki, D-31st (Salt Lake, Moanalua), who favors legalizing gambling, said lawmakers pay more attention to public opinion polls than lobbying.
"I don't know what the money could do, but I think voters have a larger influence than money, and many don't know it," he said.
Voters may decide
All other states but Tennessee and Utah allow some form of gambling, and Suzuki said he hoped voters would be allowed to decide whether gambling should be legalized in Hawai'i. Gov. Ben Cayetano said last week that he also favored such an approach.
"Maybe the first step is to see what the people want, and if they want it, do some studies on the social and economic impact," Suzuki said. "The lobbying is so strong and studies are proposed, but it doesn't get off the ground for some reason."
Illegal gambling has thrived here for years anyway, he said, and a legalized form could generate money to address social problems associated with gambling, he said.
"We have a large underground gambling economy in Hawai'i, and people are sticking their heads in the sand if they don't recognize it," Suzuki said. "We have the social problems, but I don't think we're throwing the money at them."
But opponents say problems associated with gambling, such as crime, suicide and spousal abuse, far outweigh any potential benefits.
"It's a bad bet," said Dorothy "Dot" Boblin, president of the Hawai'i Coalition Against Legalized Gambling. "Most of us don't have a gambling problem, but those people who do have a terrible time and cause problems for their community, their businesses and their families."
A group called the Coalition for Economic Diversity, which includes casino developer Sun International Hotels Ltd., reported spending $44,979 on lobbying during the March-April reporting period, more than any other organization. The Coalition was also the top spender during the Ethics Commission reporting period that covered January and February, when it spent $89,044 on lobbying.
Of the $134,023 reported, $48,771 went to media advertising, $41,066 went to preparation and distribution of lobbying materials and $18,957 went to telephone and communication bills. Direct compensation to lobbyists was $10,311 and $14,112 for unspecified fees. The rest went for food and beverages.
Coalition spokesman James Boersema did not return a call for comment.
Sun International has sought a license to build and operate an $800 million hotel and casino at Ko 'Olina in West O'ahu. Last December, Gov. Ben Cayetano visited the company's Atlantis Resort and Casino in the Bahamas with lobbyists, but he said he had been most interested in a huge aquarium the resort includes.
Non-gambling groups
Another gambling firm that has been lobbying in Hawai'i is the Boyd Gaming Corp. of Las Vegas, which reporting spending $4,800 here over the past year. The Detroit-based investment group Holomua Hawaii, which has expressed interest in an exclusive license to operate two casinos on O'ahu, did not report any lobbying fees.
Groups not associated with gambling also spent considerable sums lobbying over the past year.
During the March-April reporting period, other top spenders were the Western States Petroleum Association., $27,600; the American Resort Development Association Hawai'i, $36,430; the Hawai'i Ironworkers Stabilization Fund, $25,260; and the Kaiser Foundation Health Plan, $19,310.
During the Jan.-Feb. period, the Western States Petroleum Association reported another $27,600 and the Kaiser Foundation spent $20,075. Other top spenders were the Hawai'i State Teachers Association., $26,299; and the Liquor Dispensers of Hawai'i, $22,070.
During the May-Dec. 31, 2000 period, Western States Petroleum spent $111,472 on lobbying. The Hawai'i Government Employees Association reported spending $55,134; Hawaiian Airlines, $54,409; and the Pacific Resource Partnership, $54,364.
