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Governments want that tax income. They want that business to boom. They don’t care about the side effects.
It goes beyond tax money, but that's a part of it for sure. Gambling in the USA at least helps prop up the 'American Dream' by keeping the under privileged poor and in-debt. Because at any minute they could become mega rich! Except they won't especially as the addiction will tell them to double down and make them lose it all.
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