HI HB2422

Establishes the Hawaii Internet Lottery and Gaming Corporation as a public instrumentality to conduct regulated internet gambling operations including lottery, poker, and casino games for players 18 and older.

Creates a seven-member board of directors appointed by the governor (3 members), senate president (2 members), and house speaker (2 members) with five-year terms to oversee the corporation's operations.

Allocates net proceeds from internet gaming to: public school capital improvements (35%), University of Hawaii system capital improvements (25%), medical student scholarships and loans (10%), family practice rural residency program (10%), watershed protection (10%), problem gambling programs (5%), and fund administration (5%).

Requires the corporation to select a qualified internet gaming provider through a competitive process and establish strict responsible gaming measures including age verification, geo-location controls, deposit limits, and self-exclusion options.

Exempts the corporation from state taxation and chapter 91 administrative procedures, requires quarterly and annual financial reporting to the governor and legislature, and takes effect July 1, 2012.