1. How many states have legalized or expanded legal gambling in recent years?

2. For what reason do state governments legalize gambling, including the lottery?

3. Why has state income (taxes collected) from casinos and other forms of gambling lessened in recent years?

4. Which two states do not tax gambling?

5. As states collect less money from legalized gambling, what will they do to raise money for their budgets?

CHALLENGE: How would a fiscally conservative state government compared to a fiscally liberal government differ in their approach to balancing the budget?

6. To balance their budget, politicians have several choices including raise taxes or cut spending on government programs. Ask a parent: which do you think is the better option? Explain your answer.

7. When states legalize the lottery, they say the revenue will be used for public schools. The fact mentioned is that the schools don’t get extra funding: whatever amount they receive from lottery taxes the same amount is taken away from their budget.

8. The negatives of gambling on society far outweigh the positives. Do you agree or disagree with this assertion? Consider the pros and cons of casinos, the lottery, etc. Explain your answer.