E-1: History of American Gambling

• First Wave (1607 A.D. – 1830 A.D.)
• England uses lotteries to fund the newly formed colonies.
• New York is home of first horse track
• Individuals to hold a lottery as a way to sell their property before federal banking system was created.
• Acceptance of gambling declines once countries wanted to do business with the United States.
• Dishonest lottery practices resulted in the outlawing of most gambling activities.

• Second Wave (1865 A.D. – 1895 A.D.)
• Southern states saw legalized gambling as an easy way to bring in money to their states.
• Horseracing and the telegraph allow for bets to be placed from miles away.
• Louisiana scandal occurs alleged to have bribed the entire Louisiana legislature.
• territories of Arizona & New Mexico were required to close all casinos before being granted statehood. Nevada did the same (and still bans the lottery to this day).
• US Postal Service banned the mailing of lottery tickets. This law still exists today.

• The Third Wave (1930- Present)
• The Great Depression puts states in desperate need of revenue.
• 1931 Nevada re-legalized casinos.
• By 1939, 21 of the then 48 states had opened racetracks with parimutuel betting.
• During the 1940’s & 1950’s, states began to legalize charitable and social bingo.
• New Hampshire was the first state to re-institute a state lottery in 1964, New Jersey followed 10 years later.
• Federally-recognized Indian tribes are allowed to operate any form of gambling

• Resources used and referenced in this segment: Gaming Law by I. Nelson Rose & Walter Champion.