And despite the spread of legalized gambling, in most parts of the country such permission is still restricted. Gambling operations often are so profitable exactly because competition is limited. It is no coincidence that the expansion of gambling has paralleled the spread of antigovernment and antitax political rhetoric. The increasing number of governors and legislators who make promises to hold the line or roll back taxes do not want to face the fallout that comes from cutting programs. For politicians, this source of revenue has proven irresistible.
Most public officials extol the happy consequences of more gambling in their jurisdictions.
Careful studies indicate that no more is spent on these activities because of gambling than would have been spent otherwise. One place more money is being spent, however, is on gambling referenda and political campaigns. Lotteries are perhaps the hardest form of gambling to justify in terms of their costs and benefits. Lotteries prey on the poor and the undereducated. Heavy buyers include residents of low-income neighborhoods and those with limited education.