The Original Louisiana Lottery Company

In 1868 the Louisiana legislature granted a 25-year charter to the Louisiana Lottery Company. Probably no one anticipated the growth and impact this private New Orleans business would have on Louisiana history. The business began by selling lottery tickets in all U. S. states through the mail. Interest was high and revenues ran between 20 and 30 million dollars a year. An extraordinary amount of money for the late 1800's! Less than half of company revenues were paid out in prizes.

During Reconstruction, the Louisiana Lottery Company had supported Republican candidates for state offices. When Reconstruction ended, the Lottery Company quickly switched to Democratic candidates. "Major" E. A. Burke and Louis Wiltz led the well-organized "Tammany Hall" like group of lottery supporters within the Louisiana Democratic Party known as the Lottery-Ring. The Lottery-Ring had two goals. The first goal was to keep the lottery company in business. Their other goal was to protect its other business interests from government regulation. In 1878, "Major" Burke was elected State Treasurer becoming influential among Louisiana's ruling Bourbon elite.

Many North Louisiana residents were opposed to the Lottery operations but were practically helpless against the money and influence of the Lottery-Ring. A clash between the anti-lottery forces and Lottery-Ring occurred during the administration of Governor Francis T. Nicholls.

In 1876, Francis T. Nicholls was elected governor. A Democrat, Nicholls had been chosen to represent his party because of his respectable Civil War record and his reputation for honesty. He was an attractive candidate and as governor tried to live up to his reputation. His honesty was disappointing to those who were used to buying influence rather than dealing with honest and thoughtful individuals.

In 1879, the anti-lottery forces in the legislature were able to pass a bill repealing the Louisiana Lottery Company charter. Governor Nicholls signed the bill into law. The Lottery-Ring went into action and soon the combined Bourbon and Lottery-Ring legislators passed a bill called for a constitutional convention. A constitutional convention was held and the Louisiana Constitution of 1879 granted the Louisiana Lottery Company a charter of 25 years or until 1894.

Before the 25 year charter was up, another anti-lottery governor was elected, Murphy Foster. Then Lottery Company president, John Morris went on the offensive. The Lottery Company offered the state of Louisiana $1.25 million dollars for schools, levees and charitable programs in return for another 25 year charter. The 1890 legislature approved the proposal, but made it subject to voter approval in an 1892 election. Outside the state, other anti-lottery movements were making progress and the Louisiana Lottery Company's days were numbered.

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