This Christian Science Monitor editorial argues with some logic that gambling isn’t the best thing for the economy. But I think the last line is a bit utopian:
One bright spot in this deep recession is that gamblers might be saying "Enough" to the lure of easy money and calling it quits. States, too, should call it quits on lotteries and not peddle this vice.
I’d like to meet the state legislator who proposes eliminating the lottery and either cutting school budgets even further or raising taxes to offset the difference. It may very well be that, long term, funding would be better secured without a lottery, but I don’t think there’s a politician left who thinks past the next election.
See, for example: David Patterson’s formula for New York’s continued prosperity: more gambling in bars, restaurants, and racetracks!