In the colonies, government-approved and private lotteries actively encouraged. Scandals and the spread of Jacksonian morality end widespread legal gambling. By 1862 Missouri and Kentucky the only states that had not banned lotteries. Lottery prohibitions written into state constitutions. Second Wave - Gambling, legal or tolerated, ubiquitous on the Western Frontier.
Civil War devastates South, legal gambling seen as a voluntary tax.
Legal casinos in the West, racetracks in the East brought down by accusations of cheating and the rise of Victorian morality. Territories of New Mexico and Arizona told to close casinos to become states. 1909 Nevada outlaws casino gambling. 1910 New York outlaws racing, leaving only legal gambling in U.S. at racetracks in Kentucky and Maryland and a few scattered card clubs. The 18th Amendment to the U.S. Constitution, Prohibition of alcoholic beverages, submitted by Congress to the states.