Nevada Lottery Initiative Faces Another Setback in Legislature
As the leading state in the U.S. gaming industry, Nevada notably stands out as one of the few states without a lottery. Recent developments have confirmed that this status will persist for the foreseeable future, as the state’s latest attempt to implement a lottery came to an abrupt halt on April 11.
Since the Nevada constitution was ratified in 1864, lotteries have been prohibited. The state made headlines when it legalized casino gambling back in 1931, transforming into the primary gaming destination in the country. In a remarkable achievement, Nevada’s casinos reported a record-breaking $15.6 billion in gross gaming revenue in 2024.
Over the decades, there have been numerous attempts to launch a state lottery, but these efforts have consistently been thwarted by powerful casino interests, often before gaining any significant momentum. However, this year’s initiative was different, as a lottery bill known as AJR5 successfully passed through both chambers of the legislature in 2023. This move ensured that if the bill was approved again in the current session, it would reach the voters.
Reintroduced for the 2025 session on February 3, the bill struggled to gain traction and ultimately faced its demise with the first committee deadline approaching. Assembly Speaker Steve Yeager confirmed on Friday that AJR5 would not move forward, stating, “With so much economic uncertainty and shocking federal funding cuts, this measure will not move forward.” Yeager indicated that initial discussions regarding the bill explored the potential for Nevada to participate in multistate lotteries. However, officials concluded that implementation costs were prohibitively high and the anticipated revenue was insufficient.
This latest effort came closer to fruition than past attempts, as constitutional amendments must be approved by the legislature in two consecutive sessions to be placed on the ballot. AJR5 made it through the state assembly with a 26-15 vote in April 2023 and subsequently passed the state senate with a 12-8 margin in May 2023. It was introduced by Assemblyman Cameron Miller, who chose not to run for reelection following that legislative session.
Had AJR5 succeeded in both chambersa second time, it would have been put to a state referendum in 2026. With its failure, the entire process must restart, pushing any potential lottery plans several years into the future. As a result, Nevada will continue to share its non-lottery status with states like Alaska, Utah, Hawaii, and Alabama.
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This bill created a conflict between the Nevada Resort Association (NRA) and the Culinary Union, both significant players in the state’s gaming landscape. The Culinary Union favored the bill because it included proposed funding for youth mental health programs, although this was not explicitly defined in the legislative language. On the other hand, the NRA has consistently opposed lotteries due to the risk of diminished revenue for casinos.
In the midst of this legislative tug-of-war, polling data suggests that many Nevadans are in favor of establishing a lottery. A recent survey by Noble Predictive Insights revealed that 75% of respondents supported legalizing a lottery, while only 13% expressed opposition, and 12% were undecided.
Advocates for a lottery also highlight the substantial amount of money that Nevada residents are spending on lottery tickets in nearby states. A report from the Nevada Independent noted that two of the most successful California Lottery retailers are located at Primm and Gold Ranch, both of which are adjacent to Nevada’s major population hubs, Las Vegas and Reno, respectively.
