Bill to Bring the Lottery to Nevada Fizzles Despite Support
A legislative effort to establish a state-run lottery in Nevada has come to an end. Assembly Speaker Steve Yeager announced at the end of last week that Assembly Joint Resolution 5 (AJR5) would not advance further in the current legislative session.
LISTEN TO THIS ARTICLE:The bill, which aimed to overturn a 159-year-old ban embedded in the Nevada Constitution, would have paved the way for Nevada to join the majority of US states that operate a lottery. Nevada remains one of only five states without a lottery, alongside Alabama, Alaska, Hawaii, and Utah.
Related: Nevada Moves Closer to Creating State Lottery SystemInitially introduced in 2023, AJR5 had received strong bipartisan support, passing through both legislative chambers. As a constitutional amendment, however, it required approval in two consecutive legislative sessions before being placed on the ballot for voter consideration.
The earliest opportunity for public voting would have been in 2026. Despite its early momentum and apparent public interest, the bill was withdrawn before it could proceed to the next stage of the legislative process.
The bill had the backing of the influential Culinary Workers Union Local 226, which represents a large portion of Nevada's casino and hospitality workforce. The union argued that a state lottery could generate additional funds to support public services, including education.
To bolster its position, the Culinary Union commissioned polling to gauge voter sentiment on the matter. Conducted by David Binder Research, a political polling firm with a long history of working with Democratic campaigns, the survey indicated that 84% of Nevadans supported the creation of a state-run lottery.
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Despite widespread public support and labor union advocacy, opposition from key industry stakeholders played a significant role in halting the bill's progress. The Nevada Resort Association, representing the state's powerful casino and resort interests, voiced concerns about the impact a lottery could have on existing gaming revenues. Industry leaders have long opposed the introduction of a lottery, citing fears that it would cannibalize gambling dollars currently spent in casinos, which are a cornerstone of the state's economy.
In his announcement, Yeager explained that the original approval of the bill two years ago was intended to give lawmakers time to explore how Nevada might integrate into multistate lottery programs, such as Powerball or Mega Millions. However, further examination revealed that launching a lottery would involve considerable upfront costs, including infrastructure, regulatory oversight, and public education campaigns. Additionally, anticipated revenues were not as substantial as initially hoped, which diminished legislative interest in continuing the effort.
The economic implications of lottery participation were also highlighted by activity along Nevada's state borders. According to the California Lottery, the two highest-grossing retailers for lottery ticket sales are located just across the state line but are operated by Nevada-based gaming companies.
These include Truckee Gaming's Gold Ranch Casino & RV Resort in Verdi and Affinity Gaming's locations in Primm. Both sites are situated in California but attract a majority of their customers from Nevada, indicating that many Nevada residents are already participating in lottery games through neighboring states.
With the withdrawal of AJR5, any future attempt to establish a lottery in Nevada will require the introduction of new legislation and the restart of the constitutional amendment process. For now, Nevada maintains its longstanding policy of prohibiting state-run lotteries, even as its residents continue to cross state lines to participate in them elsewhere.
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