New Hawaii laws hold landlords accountable for illegal gambling in rented properties

Garance Limouzy July 15, 2024

In Hawaii, Governor Josh Green signed a set of laws to close legal loopholes that previously absolved landlords of responsibility when tenants ran illegal gambling rooms. Under the new regulations, landlords must exercise due diligence to ensure that their properties are not used for illegal gambling activities.

Expanding gambling enforcement

The bill signed by Governor Green, SB 2197, expands “the definition of “advance gambling activity” to include various forms of material aid to gambling activities, such as creating gambling games, maintaining equipment, and managing financial operations. The act emphasises the responsibility of those with control over premises used for gambling and includes a repeal and re-enactment clause effective July 1, 2029”.

In practice, this new extended definition of gambling activities means that landlords who rent their property to tenants engaging in illegal gambling activities, such as opening an illegal den, are now held responsible.

Before this amendment, landlords could not be prosecuted for illegal activities occurring on their property unless it could be proven that they made “no effort to prevent” the illegal gambling activities. However, this law was ambiguous, allowing landlords to avoid legal consequences by merely claiming, for instance, that they had issued a verbal reprimand to a tenant. This law ensures that landlords will no longer look the other way.

Opposition to the new regulation

Hawaii’s Office of the Public Defender warned the governor that this law could have negative consequences. The Office officially opposed the law and wrote a letter that reads: “Suppose a married couple owned a property in which the husband ran an unlawful gambling operation. While the wife knows about the operation and objects to it, she can do little to dissuade her husband and stop the activity.”

“The new definition … allows prosecutors to go after her as well as her husband, and the deleterious consequences that come with a criminal prosecution like civil asset forfeiture, suspension of voting rights, and immigration consequences would fall on the wife,” the Office added.

The Office of the Public Defender concluded that “unlawful game rooms are prevalent” throughout the state and should be stopped, but SB2197 “takes aim at the wrong people and will do little to curb the gambling.”

Hawaii’s issue with illegal gambling

Illegal gambling rooms in Hawaii are a recurring issue.

Honolulu Prosecuting Attorney Steven Alm declared: “Illegal gambling establishments throughout the state — and perhaps most alarmingly in our residential neighbourhoods — have become notorious for attracting and fostering violence, illicit drugs, sex trafficking, and other dangerous activities. This is not a victimless crime, and it is not healthy for our communities.”

Hawaii, alongside Utah, has the strongest anti-gambling laws in the USA. “Today’s bills mark a substantial advancement in our efforts to enhance public safety and strengthen our law enforcement systems,” said Governor Green after signing the law. “By addressing issues ranging from gun control to gambling regulation and support for survivors of abuse, we are building a safer and more just Hawaiʻi.”