Proposal in Utah Calls for Border-Only Lottery to Retain Gambling Revenue

There are currently only two US states that have the toughest laws when it comes to gambling. Those are Hawaii and Utah, where any form of gambling, including lottery, is illegal.

In Utah, there’s an active constitutional ban on gambling activities dating back to 1896. Last year lawmakers in the state tried to legalize a state lottery. Yet, the effort didn’t gain traction. Still, this doesn’t mean the lawmakers have given up on such attempts.

Now, another attempt for the legalization of a lottery in Utah is underway. The push is led by Utah State Rep. Kera Birkeland who anticipates reintroducing a constitutional amendment that proposes the legalization of lottery in Utah, as announced by FOX 13.

Despite Birkeland’s previous attempt not picking up speed, she admitted plans to reintroduce the proposal this year. A major difference in the proposal when compared to other states is that it calls for the legalization of a state lottery only in counties that border nearby states where lotteries are available.

This otherwise means that the lottery may arrive to counties that border with Arizona, New Mexico, Colorado, Wyoming, Colorado and Idaho. Considering that Nevada currently doesn’t have a lottery, Utah counties that share a border with the state won’t have a lottery.

Millions Are Flowing Out of State on Lottery Activities

According to Birkeland, the push comes at a time when millions of dollars are spent by Utah residents on lottery activities in nearby states. She estimates that a minimum of $200 million is spent by Utah residents on lottery in nearby states.

Ultimately, Birkeland’s proposal seeks to capture this revenue which is otherwise leaving Utah. Thanks to this new revenue stream, Utah will be able to keep its taxes low or even consider tax cuts.

“What I’m trying to do is just capture the existing behavior of people who will drive across the state line to buy those tickets,” explained Birkeland. She added: “What I’m proposing this year is that any county that borders a state with the lottery can open up and have the lottery in that county.”

Not unexpectedly, the proposal won’t permit lottery activities in Utah’s most populous counties like Davis and Salt Lake. Still, the border-only lottery legalization is expected to generate millions in extra tax revenue.

The aforementioned proposal is expected to be introduced during the Utah State Legislature’s 2025 session. In case Birkeland’s proposal receives a green light, it will be up to the voters to decide for or against it at a vote in November 2026.