State-sponsored gambling is now widespread in both Canada and the United St
ates. The purpose of this paper is to provide a critical analysis of gambli
ng as a revenue-raising instrument for government. We begin by outlining ke
y principles, and then demonstrate how a realistic appraisal of the economi
c and employment effects of expansion can be achieved. Next, we evaluate ga
mbling as a source of revenue and jobs. A discussion of cost issues and a b
rief treatment of First Nations gambling follows. Recommendations complete
the paper.