HONOLULU (AP) -- Hawaii's new gambling tax law is being called "ridiculous" by its critics.
Under the law, island residents can no longer offset their winnings with their losses. Essentially, they'll pay tax on every winning hand, even if they end up losing.
Under the old law, gamblers were taxed on net winnings, which are calculated by subtracting losses from winnings.
But a bill signed into law recently by Republican Gov. Linda Lingle mandates all winnings are to be considered for tax purposes. State Rep. Pono Chong sponsored the legislation.
The Democrat says something had to be done to address the state's budget deficit.
Chong says the law is expected to raise about $300,000 a year in additional tax revenue.
Las Vegas is the No. 1 travel destination for island residents.
Under the law, island residents can no longer offset their winnings with their losses. Essentially, they'll pay tax on every winning hand, even if they end up losing.
Under the old law, gamblers were taxed on net winnings, which are calculated by subtracting losses from winnings.
But a bill signed into law recently by Republican Gov. Linda Lingle mandates all winnings are to be considered for tax purposes. State Rep. Pono Chong sponsored the legislation.
The Democrat says something had to be done to address the state's budget deficit.
Chong says the law is expected to raise about $300,000 a year in additional tax revenue.
Las Vegas is the No. 1 travel destination for island residents.
