Yes, the government should be allowed to run casinos as a source of revenue, because all casinos do are tax people who are bad at math. The vast majority of people who gamble, lose. The people who can't figure this out, give their money to the government by gambling. This means less taxes for me. I have no problem with this.
Much like alcohol, cigarettes, and things of that nature, I see no reason why it shouldn't be a "user beware" situation with casinos. If people want to throw all their money away and have that thrown away gambling money actually go to something useful, all the better for the rest of us.