The Ralph Reed scandal will be used as evidence for the nature of the religious right. I think it is more applicable to the nature of American politics as an essentially criminal enterprise. But it also teaches us about the nature of gambling.

For gambling to attract investment it has to be mostly illegal.

Gambling establishments want to be regional centers for pilgrims. They will want to expand their casinos to accomadate the customers they hope to attract. But the profits will be drastically cut if gambling is simply universally available. If every state and every county and every municipality makes it easy to gamble the profits that drive huge billboards and TV ads are going to be cut into.

The casino owners needed Reed to protect their turf by disallowing any competition. (Again, note the criminal behavior; mob drug distributors also use the threat of force to keep competitors from selling drugs.)