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Which states ban lottery?

Lotteries are a popular form of gambling in many parts of the United States. Playing the lottery offers the chance to win huge jackpot prizes, making it an alluring endeavor for many. However, not all states allow lotteries. Currently, there are 5 states that prohibit lotteries entirely.

States that Ban Lotteries

The 5 states that currently ban lotteries are:

  • Alabama
  • Alaska
  • Hawaii
  • Utah
  • Nevada

These states have laws expressly forbidding lotteries and the sale of lottery tickets. Residents of these states cannot play major multi-state lottery games like Powerball and Mega Millions. Let’s take a closer look at each state’s history and reasoning behind banning lotteries.

Alabama

Alabama has one of the oldest state bans on lotteries. In the early 1900s, lotteries were associated with corruption and considered a drain on the economy. When Alabama wrote its state constitution in 1901, it included a provision to ban lotteries. This provision is still in effect today, making most forms of gambling illegal in Alabama.

There have been several unsuccessful attempts to repeal the lottery ban in Alabama. Proponents argue that a state-run lottery could generate over $200 million annually for education programs. However, these efforts have been defeated each time, with opposition citing moral objections. Currently, political leaders in Alabama show little interest in allowing a state lottery.

Alaska

Alaska banned lotteries in its original state constitution in 1959. At that time, gambling was seen as a threat to the young state trying to establish law and order. Today, Alaska takes a generally restrictive stance on gambling. Charitable gaming is allowed with permits and regulations. But overall, most forms of gambling remain illegal in Alaska, including lotteries.

Efforts to establish a lottery in Alaska have gained some traction but faced immense opposition. Critics raise social concerns over increased gambling addiction. Proposals have also been defeated based on legal issues around who would operate the lottery and how the revenue could be spent. A change to the state’s blanket prohibition on lotteries would require an amendment to the constitution.

Hawaii

Hawaii prohibits all forms of gambling, including lotteries. Gambling was outlawed upon Hawaii’s statehood in 1959 to suppress illegal gambling operations. Hawaii also wanted to project a family-friendly tourism image versus one centered on vice and corruption.

Currently, Hawaii has some of the strictest anti-gambling laws. Residents are not even permitted to place bets in office sports pools or mahjong games played at home. Over the decades, Hawaii has firmly rejected initiatives to hold a state lottery or allow casinos. Some cite the state’s large tourism industry and lack of need for additional state revenue.

Utah

Utah has perhaps the strictest anti-gambling stance of all the states banning lotteries. Gambling is considered inconsistent with the values of the predominant Mormon population. Utah’s criminal code outright prohibits any form of gambling, including lotteries.

Efforts to establish a lottery in Utah have been quickly dismissed. A proposal in the 1990s was met with outrage and Utah reaffirmed its prohibition by symbolically declaring the Utah Jazz basketball team the “official state lottery.” Public perception of gambling as immoral makes it highly unlikely that Utah’s lottery ban will change anytime soon.

Nevada

Nevada may seem like an unlikely state to ban lotteries given its reputation for gambling and casinos. But the reasoning behind Nevada’s ban is simply economic. Nevada profits tremendously from gambling tourists. State leaders want residents to spend their money at Nevada casinos instead of on out-of-state lotteries.

Nevada has held firm on its lottery ban even as neighboring states like California have introduced lotteries. Proposals have attempted to restrict lottery sales to just state residents. But any form of state-sponsored lottery is seen as competition and direct threat to Nevada’s gambling-based tourism industry.

Arguments For and Against Lotteries in the Banning States

The debate over whether to legalize lotteries persists in states with bans. Here are some of the common arguments made on each side:

Arguments For Lotteries

  • Lottery revenue can fund important public services like education, health care, infrastructure, and more.
  • Playing the lottery is an individual freedom. Adults should have the right to make their own choices.
  • Lotteries provide safe, regulated gambling versus illegal options.
  • Lotteries create jobs to administer the games and sales network.
  • Neighbor states with lotteries get revenue from cross-border sales to banning state residents.

Arguments Against Lotteries

  • Lotteries prey on human weakness and tendencies like addiction, desperation, and false hope.
  • Lower income demographics spend a disproportionate amount on lotteries.
  • Lottery revenue is an unreliable, fluctuating source of government funds.
  • State-sponsored lotteries send a message that gambling is morally acceptable.
  • Lotteries do not actually increase overall state revenue or consumer spending power.

There are reasonable cases to be made on both sides. Each state must ultimately weigh public sentiment, moral views, and economic impacts to determine if legalizing lotteries is right for their state.

Attempts to Change State Lottery Bans

Despite firm prohibitions, there have been efforts in each state to establish lotteries through legislative channels or public votes. Here is a brief history of some of those key attempts.

Alabama

1999 – Governor Don Siegelman proposes a state lottery to fund education. The bill passes the Senate but fails in the House.

2004 – Governor Bob Riley appointed a task force to explore a lottery. The task force recommended against it.

2015 – Senate Bill 452 proposes a paper lottery with jackpots up to $50 million to fund pre-K programs. The bill fails to advance.

2020 – House Bill 269 proposes a paper lottery to fund expansion of broadband internet. The bill dies in committee.

Alaska

1984 – Ballot Measure 1 proposes a state lottery. It is struck down by 56% of voters.

1988 – Ballot Measure 4 seeks to allow charitable gaming like bingo and raffles. It passes with 67% support.

1986 – Governor Steve Cowper pushes a lottery bill to fund education. It is defeated in the legislature.

2008 – Ballot Measure 1 proposes a lottery to fund education. It fails with over 60% voting no.

Hawaii

1963 – A proposal to establish a lottery to provide teachers’ salaries fails to pass the legislature.

1990 – Bills introduced to allow a lottery aimed at boosting tourism. They do not pass.

2010 – House Bill 2422 proposes a state lottery with gaming machines. It dies in the Finance Committee.

2011 – Measure on establishing a lottery system is filed but not considered.

Utah

1969 – Bill to create a lottery and allow pari-mutuel betting is vetoed by the governor.

1984 – State Senate defeats proposal for establishment of a lottery.

1987 – House bill proposes a state-operated lottery. Killed in committee.

1993 – Lottery proposal soundly rejected by legislature within 2 days.

Nevada

1984 – Measure to legalize lottery dies prior to gaining ballot access.

1989 – Petitions circulated for ballot measure to approve lottery fails to qualify.

2016 – Initiative to allow lottery only for Nevada residents does not gain ballot access.

2018 – Group files lottery ballot measure but does not obtain required signatures.

Despite many attempts over the decades, voter or legislative approval to lift lottery bans has not succeeded in any of these states. Public opposition remains substantial, especially in Utah and Hawaii. Alabama and Alaska seem the most likely candidates to eventually allow lotteries. But so far, the football team Utah Jazz remains the “official state lottery” of conservative Utah.

Impacts of Lottery Bans

The absence of state lotteries has social, political, and economic implications, including:

  • Lost government revenue – No funds generated for state programs and services.
  • Loss of consumer spending – Residents spend lottery money out of state instead.
  • Growth of illegal lotteries – Underground lottery rings can develop.
  • Contradictory laws – Some states allow tribal casinos despite lottery bans.
  • Limitation of personal freedom – Adults have restricted gambling choices.
  • Lack of lottery job opportunities – Employment in this sector is non-existent.

However, the absence of state lotteries may have benefits like less problem gambling. And the majority opinion in these states is that any economic gains from lottery revenue do not outweigh the negative social impacts.

Cross-Border Lottery Sales

One issue facing the banning states is cross-border lottery sales to their residents. With most neighboring states allowing lotteries, residents can easily cross state lines to purchase tickets. This results in lost potential revenue for the lottery-banning states.

State Border Lottery States
Alabama Florida, Georgia, Tennessee
Alaska None (not bordering other states)
Hawaii None (isolated, no direct borders)
Utah Idaho, Wyoming, Colorado, Arizona, Nevada
Nevada California, Oregon, Idaho, Utah, Arizona

Utah and Nevada clearly have the most border access to lottery states and likely the most cross-border lottery sales. Hawaii and Alaska face less issues in this regard being geographically isolated. Alabama also has significant lottery access with neighbors Florida, Georgia and Tennessee. Cross-border sales represent millions in revenue flowing outside the states instead of being kept in-state to fund local needs.

Exceptions to Lottery Bans

While the 5 states have broad lottery prohibitions, there are some exemptions. These include:

Native American Lotteries

Native American tribal nations can operate lotteries and casinos on tribal lands even if banned by the state. This has resulted in casinos being established in Utah, Alabama, and Alaska despite state lottery bans.

Charitable Gambling

Many states with lottery bans allow some forms of gambling if it benefits non-profit causes. Charitable gaming like bingo and raffles are permitted in a regulated fashion in some banning states.

Historical Racing Machines

Alabama and Wyoming permit slot machine style devices for betting on the outcome of past horse races known as historical racing machines. This form of gambling skirts the technical definition of a state lottery.

Sports Betting

Several states without lotteries like Nevada and New Jersey have legalized sports betting following the repeal of a federal ban. Sports betting does not meet the exact definition of a prohibited lottery in some states.

Future Outlook

What does the future hold for lottery bans in these holdout states? Here are some predictions:

  • Utah is highly likely to keep its lottery ban due to strong moral opposition.
  • Hawaii also faces substantial cultural resistance and seems unlikely to establish a lottery.
  • Alabama and Alaska have the best chance of instituting lotteries but face continued political disputes.
  • Nevada may maintain its ban to shield gambling industry but could allow lottery participation for residents only.
  • Exceptions for tribal and online gambling may increase despite state bans.
  • Continued lobbying will keep lottery legalization a hot debate in all 5 states.

For over 50 years, residents in these holdout states have crossed borders and enviously eyed massive jackpots they are barred from winning. But ultimately, each state faces difficult questions over how much economic gain is worth moral and social costs. This challenging balancing act will continue playing out in state legislatures and at the ballot box. So lottery hopefuls may have to keep driving across state lines as the deliberation drags on in these 5 stubborn anti-lottery states.

Conclusion

State lottery bans remain firmly in place in Alabama, Alaska, Hawaii, Utah, and Nevada due to a mix of economic, moral, and social factors. These states prohibit lotteries as a matter of public policy through constitutional provisions or criminal statutes. Attempts to initiate state-run lottery systems have failed for decades in the face of significant public and government opposition. The costs of increased gambling addiction and other societal ills are seen as outweighing any benefits from additional state revenue and consumer enjoyment. With few signs of major attitude shifts on the horizon, lottery bans seem poised to stay on the books in these holdout states for the foreseeable future.