Legalizing Gambling in the West
Western states historically imposed comparatively low taxes on their citizens.
Indeed, low taxes became a staunch political tradition in the West. In times of fiscal crisis, such as the Great Depression and the recent recessions of the 1970s and 1980s, many Western states looked to legalized gambling as an alternative source of revenue.
The Depression forced the establishment of pari-mutuel horse racing in six Western states: California, Oregon, South Dakota, Nebraska, Texas, and Washington.
In other states that traditionally took firm positions against gambling, the populace often chose to pay higher taxes rather than to legalize gambling.
In recent years, there has been a movement toward a general decriminalization of gambling in a few prohibitionist states.
In 1971, for example, the Washington legislature voted to authorize and license a number of gambling activities.
Upon receipt of the bill, however, Governor Evans promptly vetoed it. In his view, the legislature had 'opened the door to professional gambling in Washington'.
Further, he was not convinced that legalization was truly supported by the people.
After three years of extensive caucusing, the legislature was able partly to override the governor's veto and to legalize licensed public card parlors.
By 1974, the politics of gambling had changed in Washington. Once fairly homogeneous, the population had become more diverse.
The earlier consensus on the total prohibition of gambling was diluted by the arrival of immigrants whose ancestry was neither Jacksonian nor pioneer.
California, on the other hand, shows no sign of legalizing gambling. Although it suffers from some of the same fiscal problems as the large Eastern states, it has not turned to legalized gambling as a new source of revenue.
Further, unlike some Eastern states, California has not had to legalize gambling to combat the involvement of organized crime.
The Kefauver Committee Report noted that although Los Angeles and San Francisco have extensive illegal gambling, the state's gambling is not heavily infiltrated by organized crime of the Mafia type.
According to U.S. Department of Justice estimates, less than a third of all Far West gambling is controlled by Mafia racketeers.
In 1965, Montana legalized pari-mutuel betting and created the Montana Horse Racing Commission, by which all participants in racing must be licensed. The state nets 1% of the gross receipts, while the track keeps 20%.
As early as 1937, Montana attempted to license certain games and 'trade stimulators'. For a $10 license fee, charitable organizations or businesses could provide cards and tables for playing Rummy, Whist, Bridge, Blackjack, hearts, Dominoes, and Checkers.
Also for a $10 license fee, businesses were authorized to operate trade-stimulating contests for the use of adult customers.]
As in Kansas, however, the courts later found this statute unconstitutional under the state's anti-lottery provision.