The debate over whether to lift Nevada’s longstanding prohibition on lotteries is reigniting as state lawmakers prepare to reconsider a proposed constitutional amendment. While the measure, known as AJR5, secured legislative approval in 2023, it requires a second round of votes before potentially reaching the 2026 ballot. However, strong opposition from the state’s casino industry could present a major hurdle.
Efforts to legalize a lottery in Nevada have repeatedly failed for more than a century. Since 1887, over two dozen proposals have been introduced, none of which made it past the state legislature. With the proposal set to return for another review in the upcoming legislative session, the Nevada Resort Association (NRA), the primary lobbying group for the gaming industry, has ramped up efforts to prevent its advancement.
Shortly after the 2023 session concluded, the NRA launched a campaign aimed at persuading lawmakers, including those running in the 2024 elections, that a state-run lottery would not be a beneficial addition. NRA lobbyist Nick Vassiliadis challenged the revenue expectations projected by proponents of the measure.
“To say that a statewide lottery is going to net a couple of $100 million a year in revenue is somewhat unfounded,” Vassiliadis stated. He also noted that the discussion surrounding the structure of a potential lottery—whether it would include scratch-off tickets or be part of a multi-state system—was largely absent from previous debates.
Vassiliadis emphasized that Nevada differs from other states without lotteries, as its economy is heavily reliant on a well-established casino industry that generated $15.5 billion in revenue in 2023. Unlike Nevada, the other four non-lottery states—Hawaii, Utah, Alabama, and Alaska—do not have significant commercial gaming markets.
Economic Considerations and Previous Challenges
The casino industry’s primary concern is competition. Major hotel and gaming companies argue that introducing a lottery could divert funds from resort casinos, which employ nearly 400,000 people statewide. While lottery proponents highlight potential benefits for public services, gaming industry leaders warn that convenience store and gas station-based lottery sales would offer little economic return compared to the existing casino-driven model.
Nevada’s gaming industry already interacts with lotteries across state lines. California Lottery data shows that two of the busiest ticket retailers are operated by Nevada-based companies—Truckee Gaming’s Gold Ranch Casino & RV Resort in Verdi and Affinity Gaming’s locations in Primm. These venues cater primarily to Nevada residents who cross state lines to purchase lottery tickets.
In a letter to the Legislature in 2023, Red Rock Resorts Senior Vice President of Government Relations Michael Britt voiced concerns about the impact of a lottery on the state’s gaming industry. He stated that allowing it to compete against established casino operators “goes against seven decades of proven sound public policy.”
Political Landscape and the Role of Labor Unions
The push for a Nevada lottery has been supported by labor organizations, particularly the Culinary Workers Union Local 226, which represents approximately 60,000 non-gaming employees working at resorts on the Strip and downtown. The union, along with other labor groups, has argued that revenue generated from the lottery should be allocated to youth mental health programs. However, the legislation itself does not specify mental health funding.
“We said right from the beginning that this is where the money needs to go,” Culinary Secretary-Treasurer Ted Pappageorge stated. “It’s a vehicle. To us, it wasn’t about the lottery, it was about youth mental health. More needs to be done.”
Pappageorge pointed to a recent investigative series by The Nevada Independent on youth mental health in rural areas as evidence that the issue demands further attention. He remained non-committal on the lottery itself but stressed that union-backed health centers prioritize mental health services.
“We’re going to continue to challenge Democrats and Republicans to do more,” he added. “I can’t tell you where we’re at on the lottery right now. But I can tell you we’re all in on mental health.”
Legislative Uncertainty
Although AJR5 secured initial approval in 2023, history suggests its path forward remains uncertain. Nevada lawmakers came closest to approving a lottery in 1899 when the Legislature passed a bill, only for it to be rejected in 1901. More recent efforts in 2011 and 2015 failed to advance beyond committee discussions.
With Assemblyman Cameron (C.H.) Miller, the primary sponsor of AJR5, opting not to seek re-election in 2024, the bill’s future remains unclear. If the measure follows the same process as in 2023, it will be assigned to the Assembly’s Legislative Operations and Elections Committee for further review. Lawmakers, however, could choose to let the proposal stall by declining to schedule a hearing, effectively preventing it from progressing further.
