Hawaii Hates Gambling But Loves Casino Winnings Revenues
Hawaii, one of two states without any form of legal gambling, does not let its anti-gaming stance prevent it from collecting revenue from gambling winners. In fact, the island state is preparing to pull the greatest swindle on gambling and casino patrons since the advent of three-card monte.
Residents of Hawaii who like to gamble while on vacation may find the state taxman looking for more than his share of gaming profits. In fact, under a change in Hawaii's tax code, citizens who travel elsewhere and gamble out of state can very conceivably lose and still owe the state taxes against winnings.
According to the adjusted tax laws, any jackpots or winnings by gamblers are still taxable, but losses may no longer be subtracted before calculating tax payments. In other words, a player could pump ten grand into a slot machine, then hit a five grand prize, and owe the state income tax on the five thousand.
"For the player it's really unfair because they're going to lose money gambling over time any way and to tax them only on the amounts that they win, it's just an added detriment to any gambler," casino expert Anthony Curtis told KHON-News.
The governor has until mid-July to decide whether to veto the legal change in the tax code. Without a veto, the adjustment would then become law, and jackpots won since January would be affected by the new law.
