Two years after passing it, Nevada lawmakers spike lottery legalization effort. Why?
In this week’s Indy Gaming, we learn that Hawaii may legalize sports betting, which would leave Utah as the only state without any form of legalized gambling. Utah is also one of the five states (including Nevada) without a lottery.
Despite winning approval from both legislative houses two years ago, an effort to end the state’s ban on lotteries met the same fate as every similar proposal that has been introduced since 1899.
Friday’s death of AJR5 — the deadline for bills to pass out of their first committee in the Legislature — came quickly and without a hearing in the Assembly.
Speaker Steve Yeager (D-Las Vegas) said in a statement that economic uncertainty, implementation costs and the small amount of projected revenue were reasons for not moving the proposal forward.
The legislation was backed by Culinary Workers Union Local 226, but the lead sponsor, Assm. C.H. Miller (D-North Las Vegas), did not seek re-election.
Yeager, who voted in favor of AJR5 in 2023, told The Nevada Independent on Monday that he had not spoken with any of the lottery bill’s proponents until a few weeks ago.
“It was never brought up to me until the Culinary asked when we were going to have a hearing,” Yeager said. “It was like no one worked on it.”
The rejection means Nevadans who want to buy Powerball or Megabucks tickets will still have to travel to California. Primm casino operator Affinity Gaming and Northern Nevada-based Truckee Gaming sell lottery tickets at outlets across the state line.
The union has long suggested that proceeds from a Nevada lottery would support youth mental health programs, although the eight-page legislation made no mention of how the funds would be used — just that it would end the state constitutional ban on lotteries.
In late March, the union released a poll that found 84 percent of Nevadans supported the creation of a state lottery, including the use of the proceeds for youth mental health services.
In a statement Monday, Culinary Secretary-Treasurer Ted Pappageorge criticized Democratic leadership for not holding a hearing on the bill and “killing legislation they supported last session and denying Nevadans the opportunity to have their voices heard.”
A constitutional change is required for a lottery, and the measure would have needed to be approved by both legislative houses in successive sessions before voters could weigh in.
The Nevada Resort Association opposed the lottery two years ago. Once the session ended, the group began working to persuade lawmakers — including legislative candidates in the 2024 election — that having a lottery in Nevada doesn’t work.
Resort Association President Virginia Valentine applauded lawmakers for killing the resolution in a text message Monday, saying that they would have hurt the state’s casino industry. She cited a recent report produced for the group by Applied Analysis showing Nevada’s casino industry supported more than 436,000 jobs and generated an annual economic impact of nearly $100 billion.
“We applaud [lawmakers’] decision not to revisit changing Nevada’s Constitution and overturning longstanding state policy,” Valentine wrote.
“The Resort Association did what you would expect them to do. They mobilized and talked to people about their concerns,” Yeager said. “You can decide whether those concerns are legitimate or not, but they made the effort. Nobody on the proponent side made any effort whatsoever.”
The 2023 effort was the first time since 1899 that state lawmakers passed a lottery bill, which was defeated in the 1901 session.
Nevada is one of five states without a lottery, and gaming leaders said it isn’t needed, given that the statewide casino industry produced a record $15.6 billion in revenue in 2024.
Gambling plays a minuscule economic role in the other four non-lottery states: Hawaii and Utah don’t have any forms of legal gambling, while Alabama and Alaska have only tribal casinos.
Pappageorge said lawmakers should have allowed voters to make the ultimate decision on the state having a lottery.
“When politicians talk about democracy being at risk but block Nevadans from voting on something as straightforward as a state lottery, their words ring hollow,” Pappageorge said.
The issue has never made it to a Nevada ballot. More than two dozen lottery measures have been introduced in Carson City since 1977 — all have either died in committee or were rejected in one of the houses.
Sports betting could land in Hawaii. What does that mean for Boyd Gaming?
Hawaii and Utah are the only two states without any form of legalized gaming — casinos, sports betting, lottery or horse racing.
For now.
A majority of Aloha State lawmakers support legalizing online sports betting. This action wasn’t on the 2025 bingo card of any gaming industry prognosticators.
Gaming consultant and analyst Steve Ruddock wrote on Substack that Hawaii is the year’s surprise headline.
Boyd Gaming is quietly watching. The Las Vegas-based company draws the bulk of its business for its three downtown casinos from the island state — an effort that began more than 50 years ago when Boyd’s founders began operating charters from Hawaii. Boyd representatives told Hawaii lawmakers in January that sports gaming taxes don’t bring in the money that’s promised.
Company spokesman David Strow declined to comment last week. Boyd executives are expected to receive questions about Hawaii from analysts when first-quarter earnings are reported April 24.
Boyd owns 5 percent of national sports betting operator FanDuel, which manages the activity in conjunction with the company’s casinos outside Nevada. However, Boyd operates sports betting at its 10 casinos in Southern Nevada.
HB1308 calls for Hawaii to allow four online sports betting licenses with a fee of $250,000 per license. Operators would be taxed 10 percent on all profits. The legislation also calls for the creation of a problem gambling prevention fund.
It’s unclear where the licenses would land. Representatives of BetMGM, FanDuel, Fanatics and DraftKings have been present during committee hearings.
The House passed the bill in March, and the Senate approved the measure last week with a few amendments. The bill is heading to a conference committee of both houses to work on a compromise, possibly as soon as this week. The bill would then go to Gov. Josh Green, a Democrat.
The governor said he was neutral on sports betting legalization but suggested there was an economic upside from the activity. Previously, Green said he was open to including some forms of gambling as part of the new Aloha Stadium project in Honolulu. However, that legislation went nowhere.
What I'm reading
🧳 Nevada's Cortez Masto sends letter to Trump officials on tourism concerns — Kyle Chouinard, Las Vegas Sun
The senator is worried about federal cuts as Las Vegas expects a loss of international visitors.
🏀 Betting was up in men’s NCAA Tournament and during women’s basketball season — Mark Anderson, The Associated Press
Caesars said NCAA Tournament betting was “robust,” with four No. 1 seeds in the Final Four. Bettors still had significant interest in women’s college basketball, even without Caitlin Clark.
✈️ Southwest Airlines will begin cabin retrofits in May — Tatenda Karuwa, Simply Flying
The program by Harry Reid International Airport’s largest carrier is part of the airline’s new model, which offers passengers extra-legroom seats and assigned seating.
News, notes and quotes
🏎️ MGM brings back Fountain Club for Las Vegas Grand Prix
The Bellagio Fountain Club, an ultra-luxury, three-level viewing space for watching the Formula One Las Vegas Grand Prix, will return for the third straight year, MGM Resorts International announced last week. The temporary structure on the Strip covers the length of two football fields and fronts the Bellagio fountains, providing indoor and rooftop viewing of the race. Guests dine on meals prepared by the company’s celebrity chefs. Three-night tickets for the Fountain Club start at $7,750 per person, MGM said in a statement. The Grand Prix is scheduled for Nov. 20-23.
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A Clark County District Court jury awarded $15 million to a Bakersfield, California, resident in a slip-and-fall lawsuit against the Cosmopolitan Las Vegas and the resort’s owner, MGM Resorts International. According to the lawsuit, Deborah Fenton, a guest at the resort, went to the property’s Chandelier Bar on Sept. 24, 2021, and slipped and fell “due to an unsafe and dangerous condition on the property, specifically water and glass.” The single-count negligence lawsuit did not specify the extent of Fenton’s injuries. The jury awarded Fenton $12.3 million for pain and suffering and a combined $2.7 million for past and future medical expenses, as well as pain and suffering. A spokesman for MGM Resorts could not be reached.