States should sponsor casinos. I live in Ohio where they are only now starting to build casinos. Indiana has had casinos for years. All of my family and friends have taken day trips to Indiana to visit the casinos. On one occasion we even rented a bus. States that do not have casinos are missing out on a lot of money.
Though the power that larger casinos have when it comes to the market these days is staggering, they are still privately owned businesses, and are doing perfectly fine on their own with out the funding from state government. They are doing well enough that the thought of them receiving such funding, especially from sales tax payers, does not entirely make sense.