Hawaii Intensifies Regulation of Sweepstakes Centers
In Hawaii, sweepstakes cafes continue to operate despite a significant crackdown by local authorities and a federal court ruling declaring the use of sweepstakes machines as a form of gambling.
On May 12, 2014, the Honolulu Police Department (HPD) initiated a crackdown on these establishments, confiscating 200 sweepstakes machines from 14 different locations around the city. The HPD's investigation is not yet over, and they have video evidence from inside the establishments that could help them find more individuals involved in these enterprises.
A total of 414 charges have been filed against three establishment owners and six additional employees. Among the charged individuals are Mike Miller and Mike Madali, who are currently in the mainland United States and will be arrested upon their return to Hawaii.
Sweepstakes machines are used as an attempt to circumvent local gambling regulations by offering games of chance only alongside a purchase. Many states, including Hawaii, have worked to outlaw such games or have found them illegal under current gaming law. However, Hawaii remains one of only two states, along with Utah, that currently has no forms of legalized gambling.
Despite the crackdown, the status of sweepstakes cafes in Hawaii remains that of legal operation under existing regulations. Tracy Yoshimura, owner of PJY Enterprises, which manufactures the sweepstakes machines, has called the crackdown a form of harassment and has sued HPD and the city in response.
Residents have been making regular complaints about the sweepstakes cafes hosting such games. HPD Major Jerry Inouye has advised that it would be wise for establishments with sweepstakes machines to remove them to avoid further action. The charges against the individuals involved include criminal charges of money laundering and promoting gambling.
The federal judge, Leslie Kobayashi, has declared that the use of sweepstakes machines, known as products direct sweepstakes terminals (PDS devices), constituted gambling. PJY Enterprises plans to appeal the ruling in the 9th Circuit Court.
As of August 2025, Hawaii is listed among the states where sweepstakes casinos—including sweepstakes cafes—are legal, with about 70+ such venues operating in the state. There are no current statewide bans or court rulings overturning their legality in Hawaii.
Customers could potentially be charged with crimes as a part of the crackdown if they do not stop playing at the sweepstakes cafes. The article was last updated on June 23, 2025.
In the wake of Hawaii's ongoing struggle with the legality of sweepstakes casinos, a recent general news article revealed Finance officials are considering the impact of gambling revenues on the local economy, particularly as sweepstakes cafes continue to operate despite various crackdowns. Concurrently, the casino-and-gambling sector in Hawaii is under scrutiny for potential connections to crime-and-justice issues, with ongoing investigations examining money laundering and promoting gambling among establishment owners.
