Posted on: Tuesday, June 5, 2001

Gambling firm halts floating casino plan

By Johnny Brannon
Advertiser Staff Writer

A gambling firm that spent more money lobbying the Hawai'i Legislature in the past year than any other group has dropped its plan for a dockside floating casino.

The Hollywood Casino Corp. backed off when local officials made it clear they were more supportive of a rival plan to build a casino on land, said Jim Wise, Hollywood Casino's marketing director.

"As soon as they went toward land-based, that pretty much ended it for us," Wise said. "We haven't spent a dollar since."

The Dallas-based firm pumped at least $207,428 into lobbying efforts here between May 2000 and June 2001, far more than any other single entity, according to records filed with the state Ethics Commission.

A group called the Coalition for Economic Diversity, which includes casino developer Sun International Hotels Ltd., reported spending $134,023 on lobbying between January and April, the most during that period.

Sun International has sought approval for an $800 million hotel and casino in Ko Olina in West O'ahu.

Wise said Hollywood Casino had been in favor of a bill sponsored by Rep. Jerry Chang, D-2nd (S. Hilo), which stalled early in the legislative session. The bill would have permitted 24-hour, year-round gambling on barges, and would have created special funds to improve education and counsel gambling addicts.

Hollywood Casino had no particular location in mind for a floating casino but had been interested in using existing dock facilities, Wise said. The $570 million company operates hotels and dockside casinos in Illinois and Mississippi and a land-based casino in Louisiana.

The casinos netted more than $37 million in profits during the first quarter of 2001.

Hollywood Casino is not currently pursuing plans for a casino here but would if strong support for a dockside operation emerged, Wise said.

Some legislators staunchly oppose legalizing gambling in Hawai'i, and argue that it could create serious problems with spousal abuse and other crime, as well as bankruptcy and suicide. But others say the state can finance needed programs through gambling taxes, and hope to place an advisory referendum or constitutional amendment before voters soon.

"I think the Legislature is taking a very precautionary way of addressing this issue, and rightfully so," Senate President Robert Bunda, D-22nd (Wahiawa, Waialua, Sunset Beach) said Friday. "We want to know the pulse of the people, and the pressures of the state economy mean we have to look at everything. Let's get it done and find out. If the people say forget it, I say forget it."

Gov. Ben Cayetano has said he also would like to gauge public support for gambling through the ballot box.

Johnny Brannon can be reached by e-mail at jbrannon@honoluluadvertiser.com