ISLAND VOICES
If you think gambling would be good for Hawai'i, check Louisiana's promise
By Jack Hoag
Member of the Coalition Against Gambling in Hawai'i
The casino promoters' fairy-tale promises to save Hawai'i's economy would be most tempting if we had not already had a preview of reality played out in Louisiana a few years ago. The parallel between the New Orleans debacle and Hawai'i is frightening.
The main character in this tragedy is none other than flamboyant Chris Hemmeter, the former Hawai'i real estate developer. The New Orleans disaster is chronicled in Tyler Bridges' Pulitzer-prizewinning book, "Bad Bet on the Bayou."
Departing the Islands for greener pastures, in 1992 Hemmeter unveiled a grandiose $1 billion, land-based casino and riverboat gambling operation to New Orleans officials.
That dollar figure is coincidentally identical to the number posed by Sun International Hotels, so it must be considered the "opening ante" to impress decision-makers.
Reminiscent of the current sales pitches in the Hawai'i Legislature, Hemmeter promised 7,800 new jobs, well over $100 million to the city and state and a unique cultural experience for the visitor. The opulent plans for Ko Olina sound much like Hemmeter's $400-million Grand Palais crown jewel envisioned for New Orleans. At one of his many meetings with city officials, Hemmeter ran into at least one council member, Peggy Wilson, who wasn't buying his sales pitch.
To his promise "to do something unique for New Orleans," she replied, "Mr. Hemmeter, New Orleans is already unique."
And yes, Hawai'i with its special culture, climate and ambience is already unique as well. We don't need the costs that come with the incursion of gambling to despoil our state.
So how did the gambling industry's promises to the people of Louisiana work out?
Gambling's corrupt influence-peddling spread throughout the political system. Gov. Edwin Edwards was sentenced by a federal judge to 10 years in prison, and three other elected officials have been jailed.
And the casino? It went into bankruptcy, as did some of the riverboat operations.
Creditors lost heavily, bondholders were defaulted and the promised jobs were lost. Instead of reaping a tax windfall and a big up-front largesse, the government lost millions. Of the shattered expectations, there remains only a tarnished and wounded gambling infrastructure. Hemmeter declared bankruptcy in 1997.
Can the Hawai'i Legislature sort through the generous assurances that we hear from gambling proponents?
They should listen to the reassuring words of long-time Gov. Edwards in 1995. He said, "Some will look at it (gambling) as an abomination; I view it as economic development. I supported it because of the jobs it will create and the tourists it will bring."
In the aftermath, it appears that the only beneficiaries were bankruptcy lawyers.
When all is said and done, let's hope that our Legislature doesn't make the wrong decision, thereby giving some enterprising journalist the opportunity to write, "Bad Bet in Hawai'i."
