In Nevada, representatives from the gaming industry and the state’s biggest unions tangled once again, this time at a hearing of the Assembly Committee on Legislative Operations and Elections to discuss AJR5, the latest bill that will attempt to repeal the state’s constitutional ban on lotteries.
Those supporting the legislation at the hearing—which was introduced by Assemblyman Cameron Miller—included Culinary Workers Local 226, the Service Employees International Union and the Nevada AFL-CIO. The additional revenues from lottery sales, they argued, could go a long way for mental health programs across the state.
Conversely, industry organizations also came out in force to oppose the initiative—according to the Nevada Independent, Virginia Valentine, president of the Nevada Resort Association, said during the hearing that a lottery would cannibalize revenue from the casino industry, which is the “largest single employer and a largest single source of private investment” in the state.
Nick Vassiliadis, a gaming lobbyist, also noted that no part of the bill “actually directs any money to mental health,” and that it would be a “misrepresentation” to assume that operators do not care about the issue, per the Independent.
Vassiliadis also told lawmakers that the state budget already offers plenty of resources to address mental health concerns right now, instead of going through all of this trouble.
In order to become law, the bill has a long road ahead of it, as it must pass two consecutive legislative sessions and be approved by a simple majority of Nevada voters at the next general election. With that in mind, the measure wouldn’t reach voters until 2026 at the earliest, and lottery tickets wouldn’t hit shelves until 2027 or 2028.
Several sources, however, indicated to the Independent that the measure has a real chance of making it through this session due to its strong backing from labor groups.
One lawmaker who appears to be moving in favor of the lottery initiative is Assembly Speaker Steve Yeager, who at one point asked an attorney from the Legislative Counsel Bureau (LCB) if passing the measure would clear the way for officials to preemptively establish lottery regulations to streamline the implementation process.
“As long as it’s general legislation that sets standards for a state agency to either operate the lottery, or to contract out the operation of a lottery to other entities, or to authorize the sale of lottery tickets through multistate lotteries,” LCB general counsel Kevin Powers said in response, according to the Independent.
Yeager also told the Independent last month at a forum in Reno that he believes there’s “a responsible way to do (a lottery), and that’s why we’re starting the process.”
Taylor, president of UNITE HERE, Culinary’s parent organization, said in his remarks that the record profits enjoyed by operators in recent months have not equated to more jobs. He cited the fact that the state’s casino staff totaled just under 150,000 in February, which is almost identical to that of January 1994.
As far as opposition is concerned, representatives of other industries were present as well—Peter Guzman, CEO of the Las Vegas Latin Chamber of Commerce, argued that lottery sales have historically skewed towards lower income areas and areas with higher minority populations, which is a common argument against lotteries.
Per the Independent, Guzman said that his organization believes that AJR5 is “nothing more than a tax on low-income and poverty-stricken folks.”
Representatives from most of the high-profile casino operators were not present at the hearing, but Red Rock Resorts Senior Vice President Michael Britt told the Independent that the company is “firmly behind the Resort Association’s remarks.”
