Bill Text: HI HB543 | 2012 | Regular Session | Introduced
Bill Title: Gambling; Lottery; Sweepstakes
Spectrum: Partisan Bill (Democrat 3-0)
Status: (Introduced - Dead) 2011-12-01 - Carried over to 2012 Regular Session. [HB543 Detail]
Download: Hawaii-2012-HB543-Introduced.html
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HOUSE OF REPRESENTATIVES |
H.B. NO. |
543 |
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TWENTY-SIXTH LEGISLATURE, 2011 |
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STATE OF HAWAII |
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A BILL FOR AN ACT
relating to gambling.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
SECTION 1. The legislature finds that there is a proliferation in liquor establishments of vending machines that dispense sweepstakes game cards that can also be used to make brief long distance telephone calls. These cards typically cost $1 each and, while vendors make it possible to obtain a card by mail at no cost, these no-cost cards come from a separate pool of possible winners than the pool of cards placed in vending machines.
The legislature further finds that purchasers may buy one hundred or more of these cards in an effort to win a cash prize and often dispose of losing cards instead of using them for one- or two-minute long distance calls each card authorizes. With the wide availability of low‑cost and flat‑rate long distance calling plans on landline telephone accounts and free long distance calling plans on cellular telephone accounts, the $1 cost of the sweepstakes cards far exceeds the value of the long distance call authorized by the cards so that the ability to make a long distance call with the card is clearly incidental to its value as a sweepstakes entry. Sweepstakes cards are not like the chances to win prizes offered by, for example, fast food restaurants, because those chances are offered in connection with, and merely incidental to, the sale of a bona fide product, namely, a meal.
The purpose of this Act is to clarify that, where the chance to win something of value is offered in conjunction with the purchase of an item, such activity constitutes gambling, even if a chance to win is offered by mail at no cost, if the item is offered on premises licensed under chapter 281, Hawaii Revised Statutes, or if the chance to win at no cost by mail is offered from a pool different from the pool from which the chance to win via purchase is drawn.
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:
"§712‑ Free play not a defense; when. It shall not be a defense to an offense charged under this part that free play was offered, if the free play was offered by mail as an alternative to play via purchase of:
(1) An item on premises licensed under chapter 281; or
(2) A chance to win if the free play by mail is offered from a pool different from the pool from which the chance to win via purchase is drawn.
This section applies only to devices into which a consumer inserts money, either electronically or in the form of currency, and the device provides a sweepstakes ticket or card that, by reason of chance, may entitle the consumer to a money prize."
SECTION 3. Section 712-1220, Hawaii Revised Statutes, is amended to read as follows:
"§712-1220 Definitions of terms in
this part. In this part unless a different meaning plainly is required,
the following definitions apply[.]:
[(1)] "Advance gambling
activity". A person "advances gambling activity" if [he]
the person engages in conduct that materially aids any form of gambling
activity. Conduct of this nature includes but is not limited to conduct
directed toward the creation or establishment of the particular game, contest,
scheme, device, or activity involved, toward the acquisition or maintenance of
premises, paraphernalia, equipment, or apparatus therefor, toward the
solicitation or inducement of persons to participate therein, toward the actual
conduct of the playing phases thereof, toward the arrangement of any of its
financial or recording phases, or toward any other phase of its operation. A
person advances gambling activity if, having substantial proprietary control or
other authoritative control over premises being used with [his] the
person's knowledge for purposes of gambling activity, [he] the
person permits that activity to occur or continue or makes no effort to
prevent its occurrence or continuation. A person advances gambling activity if
[he] the person plays or participates in any form of gambling
activity. With regard to devices into which a consumer inserts money,
either electronically or in the form of currency, and the device provides a
sweepstakes ticket or card that, by reason of chance, may entitle the consumer
to a money prize, conduct that constitutes gambling activity under this
definition is not rendered otherwise by the fact that free play is offered by
mail as an alternative to play via purchase of:
(1) An item on premises licensed under chapter 281; or
(2) A chance to win if the free play by mail is offered from a pool different than the pool from which the chance to win via purchase is drawn.
[(2)] "Bookmaking" means
advancing gambling activity by accepting bets from members of the public upon
the outcomes of future contingent events.
[(3)] "Contest of chance"
means any contest, game, gaming scheme, or gaming device in which the outcome
depends in a material degree upon an element of chance, notwithstanding that skill
of the contestants may also be a factor therein.
[(4)] "Gambling". A person
engages in gambling if [he] the person stakes or risks something
of value upon the outcome of a contest of chance or a future contingent event
not under [his] the person's control or influence, upon an
agreement or understanding that [he] the person or someone else
will receive something of value in the event of a certain outcome. Gambling
does not include bona fide business transactions valid under the law of
contracts, including but not limited to contracts for the purchase or sale at a
future date of securities or commodities, and agreements to compensate for loss
caused by the happening of chance, including but not limited to contracts of
indemnity or guaranty and life, health, or accident insurance.
[(5)] "Gambling device" means
any device, machine, paraphernalia, or equipment that is used or usable in the
playing phases of any gambling activity, whether that activity consists of
gambling between persons [or], gambling by a person involving the
playing of a machine[. However, lottery tickets and other items used in the
playing phases of lottery schemes are not gambling devices within this
definition.], or a lottery.
[(6)] "Lottery" means a
gambling scheme in which:
[(a)] (1) The players pay or agree to
pay something of value for chances, represented and differentiated by numbers
or by combinations of numbers or by some other medium, one or more of which
chances are to be designated the winning ones; and
[(b)] (2) The winning chances are to be
determined by a drawing or by some other method based on an element of chance;
and
[(c)] (3) The holders of the winning
chances are to receive something of value.
[(7)] "Mutuel" means a form
of lottery in which the winning chances or plays are not determined upon the
basis of a drawing or other act on the part of persons conducting or connected
with the scheme, but upon the basis of the outcome or outcomes of a future
contingent event or events otherwise unrelated to the particular scheme.
[(8)] "Player" means a person
who engages in gambling solely as a contestant or bettor.
[(9)] "Profit from gambling
activity". A person "profits from gambling activity" if [he]
the person accepts or receives money or other property pursuant to an
agreement or understanding with any person whereby [he] the person
participates or is to participate in the proceeds of gambling activity.
[(10)] "Social gambling" is
defined in section 712-1231.
[(11)] "Something of value"
means any money or property, any token, object, or article exchangeable for
money or property, or any form of credit or promise directly or indirectly
contemplating transfer of money or property or of any interest therein, or
involving extension of a service or entertainment."
SECTION 4. This Act does not affect rights and duties that matured, penalties that were incurred, and proceedings that were begun, before its effective date.
SECTION 5. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.
SECTION 6. This Act shall take effect upon its approval.
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INTRODUCED BY: |
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Report Title:
Gambling; Lottery; Sweepstakes
Description:
Amends definition of gambling to clarify that purchase of sweepstakes entry that also provides nominal non-gambling value constitutes gambling even if sweepstakes entry can be obtained without payment of consideration. Eliminates free play as a defense under certain circumstances.
The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.
