SB3281 SD1

SECTION 1. The legislature finds that illegal electronic gambling devices commonly known as "fish games", "fish tables", or "fishing games", along with sweepstakes gambling machines and similar devices, have proliferated across communities in the State. These devices operate outside any lawful gambling framework and generate significant concerns about public safety, consumer protection, and organized crime.

The legislature also finds that these devices are frequently misrepresented as games of skill or amusement but actually function as gambling devices. The devices award items of value based on chance, or a combination of chance and skill, and are often associated with money laundering, narcotics trafficking, and other criminal enterprises.

The legislature recognizes that illegal electronic gambling operations frequently resume following any enforcement actions unless the operations are subjected to ongoing compliance monitoring or closed. Post-violation monitoring, padlock orders, and extended closure remedies are necessary to prevent recurrence and to protect public safety.

The legislature believes that there is a need for the State to safeguard communities against illegal electronic gambling devices, impose duties on operators and complicit property owners, and to protect the constitutional property rights of noncomplicit owners of premises on which illegal electronic gambling devices have allegedly been used.

Accordingly, the purpose of this Act is to:

(1) Establish the criminal offense of promoting an illegal electronic gambling device;

(2) Authorize civil penalties and actions relating to the premises on which illegal electronic gambling devices have been used; and

(3) Allow the attorney general, any county prosecuting attorney, any county police chief, or the director of law enforcement to take certain actions against places used to commit certain offenses that qualify as a nuisance.

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-A Promoting an illegal electronic gambling device. (1) A person commits the offense of promoting an illegal electronic gambling device if the person possesses, operates, displays, manufactures, sells, leases, distributes, or permits on the person's premises the operation of any illegal electronic gambling device.

(2) A device shall not be excluded from the application of this section solely because the device includes an element of skill, requires user interaction, or does not directly dispense cash.

(3) Promoting an illegal electronic gambling device is a class C felony.

(4) For the purposes of this section, "illegal electronic gambling device" means any machine; table; device commonly known as a fish game, fish table, or fishing game; sweepstakes gaming machine; or a similar electronic gambling device that awards or allows the exchange of points, credits, tokens, prizes, merchandise, gift cards, cash equivalents, or anything of value based in whole or in part upon chance or a combination of chance and skill."

SECTION 3. Chapter 712, Hawaii Revised Statutes, is amended by adding three new sections to part V to be appropriately designated and to read as follows:

"§712-B Illegal electronic gambling devices; public nuisance. (1) Any building, structure, or premises that is knowingly used for the operation of an illegal electronic gambling device is a public nuisance.

(2) The attorney general, any county prosecuting attorney, any county police chief, or the director of law enforcement may bring a civil action in circuit court to abate the nuisance and seek:

(a) An injunction;

(b) Closure of the building, structure, or premises for up to one year;

(d) Civil penalties; and

(e) Recovery of enforcement costs.

(3) For the purposes of this section, "illegal electronic gambling device" has the same meaning as defined in section 712‑A(4).

§712-C Illegal electronic gambling devices; owner, lessor, sublessor, or property manager liability. (1) No owner, lessor, sublessor, or property manager of any premises shall knowingly allow the operation of an illegal electronic gambling device on the premises.

(2) Upon receiving from law enforcement any notice of the use of an illegal electronic gambling device on the premises, the owner, lessor, sublessor, or property manager shall:

(a) Issue a written demand to cease the illegal activity;

(b) Terminate the lease for the premises or commence eviction proceedings, if applicable and to the extent permitted by law;

(d) Cooperate with any law enforcement investigation.

(3) Any person subject to subsection (2) shall be deemed in compliance with the requirements of this section if, within ten business days after the receipt of notice, the person:

(a) Provides written demand to the operator or occupant to cease the prohibited activity; and

(b) Commences reasonable abatement actions, including but not limited to initiating lawful lease termination or evictions to the extent permitted by law, or other measures reasonably calculated to stop the activity.

(4) The attorney general, any county prosecuting attorney, any county police chief, or the director of law enforcement may bring a civil action in circuit court to enforce this section and may seek injunctive relief, civil penalties, and any other relief authorized by law.

(5) Any person that fails to take the actions required pursuant to subsection (2) shall:

(a) Pay a civil penalty of not more than $25,000 per violation; provided that the court may impose additional penalties upon a finding of continued noncompliance after issuance of a compliance order. For the purposes of this paragraph, "per violation" means per premises and per written notice period; and

(b) Be subject to an action for nuisance abatement.

In determining the amount of any civil penalty under this subsection, the court shall consider the person's knowledge, degree of control, promptness of abatement, cooperation with law enforcement, and whether the person made good-faith efforts to prevent recurrence.

(6) For the purposes of this section:

"Illegal electronic gambling device" has the same meaning as defined in section 712‑A(4).

"Notice" has the same meaning as defined in 712-1270.

"Violation" means a final judgment or court finding that the premises was used for the operation of an illegal electronic gambling device, including a criminal conviction.

§712-D Compliance inspections following illegal electronic gambling device violations. (1) Upon a finding that the use of an illegal electronic gambling device has occurred on any premises:

(a) The court may require the premises be subjected to compliance inspections, for no longer than twelve months;

(b) Authorities may conduct reasonable inspections of areas related to illegal gaming; provided that the inspections shall be:

(i) Limited in scope and consistent with constitutional law; and

(ii) Conducted pursuant to court order and shall not require a separate warrant.

(2) If any person refuses to permit the inspections authorized pursuant to subsection (1)(b):

(a) The person shall be subject to contempt proceedings; and

(b) The attorney general, any county prosecuting attorney, any county police chief, or the director of law enforcement may pursue enhanced remedies.

(3) For the purposes of this section, "illegal electronic gambling device" has the same meaning as defined in section 712‑A(4)."

SECTION 4. Section 712-1270, Hawaii Revised Statutes, is amended to read as follows:

"§712-1270 Places used to commit offenses against public health and morals or other offenses, a nuisance. (1) Every building, premises, or place used for the purpose of violating:

[~~(1)~~] (a) Those laws pertaining to offenses against public health and morals contained in this chapter, except offenses under part IV that do not involve the manufacture or distribution of drugs and activities under part III that involve only social gambling as defined in section 712-1231(a);

[~~(2)~~] (b) Section 132D-14(a)(1);

[~~(3)~~] (c) Any offense under part II of chapter 708 that involves a person unlawfully residing on or otherwise occupying real property to which the person has no title, lease, or other legal claim; [or

~~(4)~~] (d) Section 328G-10[,]; or

(e) Section 712-C where a violation has occurred on the premises more than once in any twelve-month period. For the purposes of this paragraph, "violation" has the same meaning as defined in 712-C,

and every building, premises, or place in or upon which violations of any of the laws set forth in paragraph [~~(1), (2), (3), or (4)~~] (a), (b), (c), (d), or (e) are held or occur, is a nuisance that shall be [~~enjoined, abated, and prevented,~~] subject to the proceedings set forth in subsection (2), regardless of whether it is a public or private nuisance.

(2) For any building, premises, or place in or upon which violations of any of the laws set forth in subsection (1)(a) through (e) are held or occur, the attorney general, any county prosecuting attorney, any county police chief, or the director of law enforcement may seek:

(a) A judicial order requiring the premises to be locked for any duration that does not constitute a taking under constitutional law; provided that the duration shall not exceed twenty months; provided further that if the court determines that the premises are a chronic nuisance the duration shall not exceed thirty-six months;

(b) A receivership;

(d) Other enhanced remedies.

(3) A court shall only issue a closure order, lock order, or appoint a receiver pursuant to subsection (2) upon:

(a) Providing notice and an opportunity to be heard to all known owners, lessors, property managers, and lawful occupants;

(b) A finding by clear and convincing evidence that the premises constitutes a nuisance under this part;

(d) Written finding specifying the duration, scope, and conditions for reopening.

(4) For the purposes of this section:

"Chronic nuisance" means three or more violations within any twelve-month period, or a violation occurring while an abatement, closure, or compliance-inspection order is in effect.

"Illegal electronic gambling device" has the same meaning as defined in section 712‑A(4).

"More than once in any twelve-month period" means two or more violations occurring within any twelve-month period, measured from the date of the first violation to the date of the second violation.

"Notice" means written notice issued by a law enforcement agency that:

(a) Is served personally by certified mail, or by electronic mail, to an address designated for notice in the lease or management agreement;

(b) Identifies the premises;

(d) States the basis for believing:

(i) The building, premises, or place is being used for the purpose of violating any of the laws set forth in subsection (1)(a) through (e); or

(ii) Violations of any of the laws set forth in subsection (1)(a) through (e) are occurring on the building, premises, or place."

SECTION 5. In codifying the new sections added by sections 2 and 3 of this Act, the revisor of statutes shall substitute appropriate section numbers for the letters used in designating the new sections in this Act.

SECTION 6. This Act does not affect rights and duties that matured, penalties that were incurred, and proceedings that were begun before its effective date.

SECTION 7. New statutory material is underscored.

SECTION 8. This Act shall take effect on March 22, 2075.

THE SENATE	S.B. NO.	3281
THIRTY-THIRD LEGISLATURE, 2026		S.D. 1
STATE OF HAWAII