Hawaii Recently Takes Steps to Shut Down Sweepstakes Establishments
In the eyes of many Americans, Hawaii evokes feelings of a tropical paradise, a haven where people can escape their problems. Sadly for the proprietors of sweepstakes cafes, they've discovered that this paradise isn't a sanctuary for their business.
A sweeping operation has resulted in hundreds of charges against the owners and operators of sweepstakes machines in Hawaii. A grand jury recently issued an indictment including 414 counts against three establishment owners and six additional employees, involving criminal offenses such as money laundering and promoting gambling.
So far, seven out of the nine people charged have been apprehended. The remaining two individuals, Mike Miller and Mike Madali, presently reside on the mainland United States. Law enforcement officials maintain that they will be arrested upon their return to Hawaii.
Notwithstanding these arrests and charges, the Honolulu Police Department (HPD) has indicated that their investigation is far from over.
“Those who possess them, it would be advisable to dispose of them eventually, as the HPD will be pursuing them,” remarked HPD Major Jerry Inouye.
Federal Judge Deems Machines Unlawful
This action comes after federal judge Leslie Kobayashi denied a motion by the city of Honolulu in another sweepstakes-related case. In this verdict, Judge Kobayashi concluded that these machines - known as products direct sweepstakes terminals or PDS devices at this juncture - constituted gambling during previous confiscations.
Although PJY Enterprises, the manufacturer, intends to challenge the ruling in the 9th Circuit Court, authorities affirm that the ruling provides them with a boost in their pursuit of other sweepstakes ventures.
"It assists us," remarked Honolulu Prosecutor Keith Kaneshiro. "It was not our main motive for doing so. It simply confirms what we believe is accurate; these machines are gambling machines."
Over the past few weeks, law enforcement has confiscated around 200 machines from 14 different sites in the city. In addition, authorities disclose that they possess video footage from within the establishments that can help them identify additional individuals involved.
Customers at Risk of Criminal Charges
In a startling revelation, the city cautioned that participants might also be charged with crimes if they failed to cease playing.
"If you desire to wager, wager in a jurisdiction where it's lawful," Kaneshiro proposed.
The HPD has acknowledged consistent complaints from residents regarding the establishments hosting such games. They further claim that sweepstakes cafes have contributed to an increase in crime in the vicinity.
"There's no finite amount of resources that can compensate for the value of residing in a community that's secure for everyone," HPD Chief Louis Kealoha asserted.
Tracy Yoshimura, owner of PJY Enterprises, has dismissed the crackdown as a form of harassment and is suing the HPD and the city in response.
Sweepstakes machines are employed as a means of evading local gambling rules by offering games of chance coupled with a purchase – commonly phone cards or internet time. However, the allure of winning a prize is the genuine draw. Myriad states have endeavored to banish such games or declare them illegal based on existing gaming law.
Hawaii is among only two states, with Utah, that currently lack legalized gambling.
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