Urban Chamber proposes Nevada lottery

Tuesday, Jan. 28, 2003 | 11:07 a.m.

The Urban Chamber of Commerce in Las Vegas is proposing that the state adopt a lottery as an alternative to increasing individual, business and other taxes to plug a multi-million-dollar budget deficit.

The chamber, which is oriented toward black-owned businesses, has released a position paper on the proposal that it expects to unveil before the Legislature at the opening of its 72nd session Feb. 3.

The position stands in contrast to casino and other business interests in the state, which are drawing battle lines over other ways to increase taxes. The gaming industry supports a tax on gross receipts that would be paid by large and medium-sized businesses. The Las Vegas Chamber of Commerce opposes such a tax, saying it would hurt its members, and instead advocates a head tax on employees that would more greatly affect labor-intensive casinos.

Casinos have long opposed the lottery on the basis that it would create competition and cannibalize the tax on casino revenue that the state relies on to fund a variety of basic government services.

Nevada is one of more than 10 states that don't have lotteries.

Casino gambling and lotteries co-exist in some states, while other states with lotteries have generated significant revenue for state coffers, according to the paper.

"Given the time it will take to repeal the existing prohibition and to establish a lottery, we further request that any tax laws passed this session contain 'sunset provisions' with an effective termination date of one year after the lottery becomes fully operational," it states.

The paper also recommends that all lottery proceeds be earmarked for educational purposes.