Oahu Businesses Operating Video Amusement Devices Must Secure New HPD Permit
Businesses across Oahu that feature video amusement devices, such as those found in arcades, restaurants, and entertainment venues, are now subject to a new permitting requirement issued by the Honolulu Police Department (HPD). This regulation is part of a broader city ordinance designed to distinguish between legal amusement operations and illicit gambling activities. The implementation of this permit system introduces a new layer of regulatory compliance that all affected businesses must navigate to operate legally.
The Change
Effective immediately, any establishment on Oahu providing video amusement devices requires a specific permit from the Honolulu Police Department. The purpose of this new permit is to ensure that these operations are legitimate and do not function as illegal gambling establishments. While the exact enforcement timeline for existing devices has not been explicitly detailed, the law's immediate effect necessitates that businesses integrate this new permitting process into their operational framework to avoid potential sanctions.
Who's Affected
Small Business Operators
Small business owners who operate establishments featuring video amusement devices, including but not limited to:
- Arcade and Entertainment Centers: These businesses are at the core of the new regulation. They will face direct costs associated with permit applications and renewals, alongside increased administrative work to ensure ongoing compliance. The need for this permit could slow down new establishment openings or renovations if the process is lengthy.
- Restaurants and Bars with Gaming Areas: Establishments that include video game machines as an amenity risk operational disruption and potential fines if they fail to obtain the necessary HPD permit. The added complexity could impact their ability to offer these features, potentially affecting customer draw and revenue streams.
- Retail Locations with Amusement Devices: Any retail store that incorporates video amusement devices for customer engagement or as a primary attraction must also comply. The financial and administrative burden of the permit could disproportionately affect smaller, independent retailers.
- Franchises: Local branches of national franchises, such as Dave & Buster's, Fun Factory, and similar concepts, will need to ensure all their Oahu locations are compliant. This adds a layer of standardization and oversight required across multiple sites.
Direct Cost Implications
Businesses can expect new expenses related to application fees, potential background checks, and the administrative time required to complete and submit the permit applications. The exact fee structure has not been widely published, but it is reasonable to anticipate costs that will contribute to overall operating expenses. Honolulu Police Department is the issuing authority, and inquiries regarding specific fees and application processes should be directed to them.
Second-Order Effects
Increased Permit Costs and Administrative Burden → Higher Operating Expenses for Amusement Establishments → Potential for Reduced Investment in New Amusement Offerings → Slower Growth in Entertainment Sector Revenue → Limited Diversification of Local Entertainment Options
This new regulation, while aimed at curbing illegal activity, can inadvertently stifle legitimate business growth in the entertainment sector. As costs and administrative overhead increase, businesses may become more hesitant to invest in or expand their video amusement operations. This could lead to a less diverse entertainment landscape for residents and tourists alike, impacting overall economic activity in related sectors.
What to Do
Actionable Guidance for Small Business Operators
Given the immediate nature of this requirement and the potential for penalties, affected businesses should prioritize obtaining the HPD permit without delay. The Honolulu Police Department has established procedures for permit applications, and it is crucial to engage with these processes promptly.
Immediate Steps:
- Identify Device Legality: Determine if your video amusement devices fall under the definition requiring a permit according to Honolulu Ordinance 23-30. The HPD website or direct contact should provide clear guidelines.
- Gather Necessary Documentation: Prepare for the application process by collecting required business information, such as business licenses, tax identification numbers, and potentially personal information for key personnel. References to City and County of Honolulu Ordinances may assist in understanding the full legal scope.
- Initiate Permit Application: Visit the Honolulu Police Department's official website or their relevant division to download application forms and understand the submission procedures. KHON2 News reported on the rule, indicating its active implementation.
- Consult Legal Counsel (If Necessary): For businesses with complex operations or those uncertain about the specifics of the ordinance, consulting with a local attorney specializing in business or regulatory law is advisable to ensure full compliance.
- Allocate Budget for Fees: Be prepared for permit application and potential renewal fees. Factor these into your upcoming operational budgets.
Timeline Consideration: While no explicit grace period or hard deadline for existing operations has been widely publicized by the HPD, operating without the required permit from the effective date of the ordinance places businesses at risk. Proactive compliance is the most prudent course of action.
