Oh but gambling is a SIN! Therefore, even when the taxes paid by the casinos pay for the salaries and the new school building and let the kids have athletics. . .it is to be discouraged!
I'm reminded of a time, years ago, when a casino wanted to donate some old computer equipment to a HS vocational program. The teacher of the program and the principal wanted the equipment. The casino wanted to donate it. (It was 0 value, as it had already been depreciated off the books.)
The school board said no way, no how, not ever. (The fact that a good percentage of their money came from taxes the casino paid and that the casino employed many, many of the parents of kids in the schools, nonwithstanding.) Don't want be associated with gambling or promote it or even seem like we like it!
Soooo. . .the casino put all the equipment the school wanted in a big plastic "dumpster". A casino worker whose wife taught in the school system backed up his truck and loaded the equipment that he'd found while "dumpster diving" and his wife drove it to the school.
If questioned, the vocational teacher and the principal could honestly say that X teacher had brought it to them, and it was some equipment that her husband had found scavenging in the trash - the casino was Not Involved.
This, apparently, was acceptable.
ETA: I think it was in
Cannery Row that Steinbeck had the madame of the local cathouse say something to the effect that every time someone in the town needed money, they came to the cathouse for donations. And because the cathouse was the cathouse, they had to donate double what all the "upstanding" industries did and expect to get no recognition. This is true of casinos today.