HB1434 Summary

• Establishes the Hawaii Lottery and Gaming Corporation as a public corporation to conduct and regulate wagering and gaming operations, including lottery games, poker, and casino games for individuals over 18 years old, excluding sports betting.

• 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 and compensation to be determined; board selects a gaming provider through competitive process.

• Designates net proceeds from gaming operations to the Lottery and Gaming Special Fund with allocations: 25% for teacher shortages, 20% for Department of Education capital improvements, 20% for University of Hawaii capital improvements, 15% for watershed/wildfire/climate resilience, 10% for medical school scholarships, 5% for problem gambling programs, and 5% for program administration.

• Corporation operates as self-sustaining entity exempt from state general fund support and state taxation; requires quarterly financial reporting, internal audit systems, and annual certified public accountant audits.

• Makes unauthorized gambling unlawful, enforceable under state criminal code; includes responsible gaming measures requiring problem gambling hotline information and self-exclusion options on gaming websites; effective July 1, 2025.