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The difference between the ability to make bets 2-3 times a week for a dollar or two and the ability to drop $500 every play of a sporting event is dramatic.
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That describes someone with maybe an irresponsible but manageable gambling habit, not a gambling addict.

Maybe it's because of pay-at-the-pump popularity now but have you never seen someone standing off to the side of the main gas station counter surrounded by a pile of scratch offs? People exist who will drop their entire paycheck on them in a single day. I've also seen people buy irresponsibly large stacks of Powerball tickets and not just the "oh, I like to fantasize about winning so I buy a ticket each week since you can't win if you don't play". It's gambling all the same.

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What about someone buying $50 of scratchers a day? Why conflate a reasonable habit on one thing with an unreasonable habit on the other when both can obviously be done reasonably or unreasonably?
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This. There's a lady that comes in to my local 7/11 and spends at least $200 on lottery tickets every week. There's no limit for people who really like to buy lottery tickets.
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You regulate other vices (alcohol, tobacco). Limiting gambling to govt owned lotteries or licenced operators is no different, you can set limits on harm, remove the profit motive if the govt operates it, and (at least where I live) the state lottery funds a large number of community grants.

Regulating it also removes demand for underground or foreign online gambling.

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The predominate reasoning for a long time now has been lotteries are addicting and bad but a small demand is guaranteed. Therefore, in the name of maximizing social benefit, only the government should run them and the profit is used to funds something less partisan (e.g. education, parks, conservation, gambling addiction services)

For these private betting firms, it's open season trying to find whales like mobile gaming, and there's no end to their greed and exploitation.

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I think this is a little myopic. There are degrees to this. It is very rare to see anyone chase their losses to a lottery ticket. I have literally never heard of anyone doing that in my life. If anything, you see some poor place overspend a bit on those tickets. With all the other types of gambling, you see people being wiped out. I think the details matter.
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