Paul Flesher, professor at the University of Wyoming, author of Religion Today writes of when Christmas was banned:
One Christmas day in America: Crowds of Americans rioting in the streets. Two opposing groups shout loudly, vying to have their messages heard and heeded. The groups meet. Confrontation ensues. Fistfights break out. Church windows are smashed. What are these rioters fighting about? Christmas. One group favors celebrating Christmas, the other opposes all Christmas observances. This isn't an imaginary event, it is history. It happened in Boston on Christmas day in 1706.
In America's increasing love-affair with Christmas (both the Christian and commercial versions), we have forgotten that there was a time when much of European and American Christianity thought that Christmas should not be celebrated. In the riot described previously, the anti-Christmas group consisted largely of Congregationalists (Puritan descendants), Baptists, and Presbyterians, while the pro-Christmas group comprised mostly Anglicans (Episcopalians). The notion that Christians of any stripe should not want to celebrate Christmas is so foreign to our present concept of the holiday, that we need to review some history to understand it.
In Boston, the Puritans outlawed Christmas in 1659. Although the ban was lifted in 1681 when the British government took control of the colony, an armed guard had to protect the governor on his way to church on Christmas of 1686. When the colony reverted to local control in 1689, Christmas again fell out of favor.
In 1836, Alabama became the first state to make Christmas a legal holiday. Other states followed suit; even Massachusetts legalized Christmas in 1856, almost 200 years after its ban. But the last state, Oklahoma, did not join in until 1907.
Read the history here.