Nevada lawmakers are set​ tо reconsider​ a constitutional amendment (AJR5) that could legalize​ a state lottery, but strong opposition from the casino industry threatens its progress. The amendment, which received initial approval​ іn 2023, needs​ a second legislative vote before potentially reaching the 2026 ballot. However, major gaming operators, represented​ by the Nevada Resort Association (NRA), argue that​ a lottery would harm the state’s casino-driven economy and fail​ tо generate expected revenue.

Economic Concerns and Industry Resistance

Casinos fear that a lottery would divert consumer spending away from resorts, which employ nearly 400,000 people statewide. Unlike other states, where lotteries contribute significantly to public funding, Nevada already has a thriving gaming industry, which generated $15.5 billion in revenue in 2023. The NRA argues that lottery ticket sales at convenience stores and gas stations would not provide the same economic benefits as casino gaming.

Many Nevadans already participate in lotteries by crossing state lines. California Lottery data shows that two of the busiest ticket retailers are just outside Nevada’s borders—Gold Ranch Casino & RV Resort in Verdi and Affinity Gaming locations in Primm—serving residents who travel specifically to buy tickets.

Casino Lobbyists Challenge Revenue Expectations

NRA lobbyist Nick Vassiliadis has questioned claims that a Nevada lottery would generate hundreds of millions in annual revenue, calling such projections unrealistic. He also criticized past discussions for lacking clarity on whether the lottery would include scratch-off tickets or be part of a multi-state system.

In 2023, Red Rock Resorts Senior Vice President Michael Britt wrote to the Legislature, arguing that allowing a state-run lottery to compete with established casinos would undermine Nevada’s long-standing gaming policies. “This goes against seven decades of proven sound public policy,” Britt stated.

Labor Unions and Political Debate

Labor unions, particularly Culinary Workers Union Local 226, support the lottery, advocating for revenue to fund youth mental health programs. However, the legislation itself does not specify such allocations.

“We’ve said from the beginning that this money needs to go to youth mental health,” said Culinary Secretary-Treasurer Ted Pappageorge. While the union is committed to expanding mental health services, it remains non-committal on the lottery itself.

Uncertain Legislative Future

Despite passing an initial vote in 2023, AJR5 faces an uncertain path forward. Nevada lawmakers came closest to approving a lottery in 1899, but the measure was overturned in 1901. More recent efforts in 2011 and 2015 failed to advance beyond committee discussions.

Further complicating the bill’s future, Assemblyman Cameron (C.H.) Miller, the primary sponsor of AJR5, is not seeking re-election in 2024. If the next Legislature declines to schedule a hearing, the proposal could stall indefinitely.