Gambling advocates, foes converging on Hawai'i
| • | Gambling hits new snag |
By Johnny Brannon
Advertiser Staff Writer
Days before the opening of the 2002 legislative session, representatives on both sides of the gambling issue are already working the halls of the Capitol and trying to firm up support from local political, business, labor and religious groups.
The president of Sun International Hotels said he hopes to convince lawmakers that they should authorize construction of only one casino in Hawai'i and that it should be built at Ko Olina in West O'ahu as part of a $1 billion luxury resort complex.
Granting more than one license, as a group of investors from Detroit has proposed, could kill Sun's project or significantly reduce its scale, Sun president Howard "Butch" Kerzner said yesterday.
"To make the investment we're talking about, we'd have to re-look at it" if gambling was legalized on a broader basis, said Kerzner, a South African resident of the Bahamas who arrived in Honolulu on Sunday.
Also here is Tom Grey, director of the National Coalition Against Legalized Gambling, who says that even one casino in Hawai'i is too many.
"Hawai'i is crucial to us because it's one of three states that doesn't have gambling," said Grey, a Methodist minister from Illinois. "Tell me gambling is economic development and I'll look you in the eye and say, 'For who?' For the owners of the casino."
He said he wants to help mobilize the state's religious congregations into a strong opposition bloc, and to convince lawmakers that social and economic problems linked to gambling outweigh any benefits.
"Churches are like troop ships for us," said Grey, an Army veteran. "It's a place to reach a lot of people fast."
For years, the Legislature and most state officials have been cool to the idea of legalized gambling, believing that the economic benefits would not outweigh the potential social ills and that the introduction of casinos could cheapen Hawai'i's image as a vacation destination.
Change of mind
But after Sept.11 and a steep drop in tourism and tax revenue, some lawmakers are saying they would consider authorizing some limited form of gambling as a way of re-energizing the state economy. The legislative session begins Jan.16.
Gov. Ben Cayetano, who toured Sun's lavish Atlantis resort and casino in the Bahamas last year, has said he is open to limited casino or shipboard gambling. He has said voters should have the final say, and he is in favor of putting the question to voters in the form of a constitutional amendment.
Some gambling advocates say an alternative would be to place a nonbinding referendum on the state ballot in November to gauge public support. But others say that would be too little, too late, and that the Legislature should approve gambling during this session.
The Detroit group hopes to build two stand-alone casinos, one at Ko Olina and the other in Waikiki, which would cater to guests of existing hotels. The group includes investors in Detroit's MotorCity casino.
Kerzner said Sun's plan is better because the casino would be a small but financially important element of a much larger project.
"I think to have a big major investment in Ko Olina would do a lot for tourism, much more than standalone," he said. "We're not talking about a box with slot machines. We're talking about a different model."
The casino at Atlantis occupies 2 percent of the ground space and generates nearly 25 percent of the resort's revenues, he said, and it would not be financially feasible for Sun to build a comparable project here without the casino.
Union won over
Sun's plan has gained the support of the International Longshore and Warehouse Union, which represents thousands of hotel workers throughout the state. Kerzner said he had made no promises to the ILWU but said Sun would not work against a union trying to organize workers at a Ko Olina resort.
"We've made it very clear that we're open to union organizing," he said.
Grey said major drawbacks to gambling are that governments often grow dependent on the tax revenue it produces, and politicians become influenced by the money that gambling interests can donate to their campaigns.
"Once it's in, the government becomes addicted to it," he said. "You risk gambling a future — once you're in, you don't get out. The big lie is that we'll limit it. But this is not something that can be controlled, because it is driven by losses. It has a corrosive effect."
Kerzner said he does not deny that there can be social problems attached to gambling, but said they can be minimized if gambling is handled appropriately.
"It should be debated and get a fair hearing, and let all the pros and cons come out," he said of Sun's proposal. "We're going to try to communicate our story as fully as we can to as many people as we possibly can."
Reach Johnny Brannon at jbrannon@honoluluadvertiser.com or 525-8070.
