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One limit on gambling revenue is that an abundance of gambling options can cannibalize a state’s collections. That is, if a state builds a new casino, it will most likely draw gamblers who were already using existing casinos (in the state or a neighboring state) rather than add new gamblers to the pool. As such, over the past decade, inflation-adjusted gambling revenue only increased 6 percent, and it declined 3 percent when measured per adults ages 18 and older.
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