Proponents of more gambling often promise that the proceeds will go to some good cause, such as education or environment. Who could argue against using the increased government revenues to improve our school system?

Only it doesn't happen. States where gambling revenues have been dedicated to education actually decreased education spending compared to other states. As gambling revenues went to fund schools, money was diverted from education to other programs. One study called the dedication of funds a "hoax."

And lower taxes? It might make sense to assume that by taking in government revenues through gambling – a voluntary "tax" – the government could decrease involuntary taxes for the rest of us. Unless, of course, the costs associated with increased gambling outweigh the benefits of the extra cash brought to the state.