Nevada Tries to Legalize Lottery but Fails Once Again
Nevada is the most thriving gambling market in the US, but surprisingly, it’s among the five states that don’t offer lottery games. Despite lawmakers’ efforts to move forward with bill AJR5 on April 11, the lottery’s status remains illegal.
The Efforts to Introduce a State Lottery
Lotteries have been illegal in the state since 1864, and it’s unusual their status hasn’t changed since the local gambling market is thriving. The Nevada Gaming Control Board reported that its gross gaming revenue for January was $1.43 billion, the second-highest since last December’s $1.46 billion.
Multiple attempts have been made to establish a state lottery over the last century, but the casino industry has made it impossible. This case was different – lottery bill AJR5 made it through both legislative chambers in 2023 and would have to go to voters if it had also passed the 2025 legislative session.
The bill was reintroduced in the February 3 session and had a deadline of April 11. All bills that hadn’t passed through their first committee were lost for this session. Assembly Speaker Steve Yeager said the bill’s first passage aimed to explore Nevada’s options for entering the multistate lottery market. However, the implementation costs were too high, and potential revenue wasn’t enough.
AJR5: Progress and Pitfalls
AJR5 was closer to success than any other bill has ever been. In Nevada, a constitutional amendment needs to be approved by the entire legislature in two successive sessions before it can be added to the ballot. On April 17, 2023, the lottery bill passed the state assembly with a 26-15 vote, followed by approval by the state senate with a 12-8 vote on May 26, 2023.
The bill was introduced by assemblyman Cameron Miller, who didn’t seek reelection after that session. Had AJR5 been approved by both chambers once more, it would have been presented to state voters for approval in a 2026 referendum. Yet, its failure means the process has to start from scratch again. Until that happens, Nevada remains one of the few non-lottery states, along with Alaska, Utah, Hawaii, and Alabama.
Lottery Legislation Supported by the Public
The lottery set the Nevada Resort Association (NRA) and the Culinary Union against each other. The Culinary Union supported the bill because of potential revenue for youth mental health programs, while the NRA opposed it because of casino revenue cannibalization.
Meanwhile, Noble Predictive Insights’ “Nevada Public Opinion Pulse” poll revealed that 75% of the participants supported the lottery legislation. Only 13% were contrary, with 12% expressing no opinion. The poll included 829 state voters.