I saw a commercial that said “Support racetracks and casino gambling in New York! The tax revenue from gambling supports schools!” That’s a clever trick. By using the revenue for schools, that justifies the State gambling monopoly.
“We use the gambling revenue for schools!” is a distraction. Suppose that casino tax revenue is $100M/year. That money is added to the school budget *BUT* the government reduces the school budget allocation by $100M.
Once government has tax revenue, they may use it for any purpose they want. Even if a specific tax is allocated to X, that merely reduces the money that would otherwise be allocated to X. That is a common propaganda trick, a tax increase allocated for a specific purpose, confusing people into supporting it.
Gambling is not evil. The State gambling monopoly is evil.
Gambling is a consensual contract between two adults. They should be free to do whatever they want. The “benefit” of outlawing gambling is not “It’s immoral!” By outlawing non-approved gambling, that subsidizes the State-licensed gambling cartel.
State casinos and racetracks are given a State license, with limited competition. Due to the monopoly/oligopoly, State gambling offers worse odds and earns higher revenues, compared to what a free market casino would offer. Part of this revenue goes to the State tax fund. A greater amount goes to corruption. That money goes to salaries for executives, lobbying, and bribes.
Once in awhile, State police crack down on an unlicensed gambling business. It can be high-stakes poker, sports gambling, or other gambling. The State media says “Gambling is immoral and should be stopped!”, justifying the raid, kidnapping, and theft. In reality, State insiders are cracking down on competition to their gambling monopoly. Morality cloaks the monopoly perk granted by the State.
Whenever police shut down “unlicensed gambling”, they are protecting the State gambling monopoly. The people who operate the State gambling monopoly earn economic rent due to the lack of competition. This stolen money is shared between the executives and politicians.
Some of the gambling tax revenue is allocated to specific projects. That’s a fnord, helping to make the gambling monopoly seem beneficial. If a specific tax is allocated to X, that merely reduces the money that would otherwise be allocated to X. That’s a common trick. People can be tricked into supporting a tax increase, if it’s for a specific purpose.