I hate to give into evil, but if every Mafioso* with a drop of Indian blood in his veins is going to be given a tax-free casino, we aren't serving morality by banning non-Indian casinos.
(* Ever hear of the LAST OF THE MOHICANS? Who's running Mohican Sun? People with names like Joey "Running Bear" Spinelli.)
States should not be in the business of encouraging people to gamble. It flies in the face of everything our country was founded on, such as saving for a rainy day etc. It plays of people's greed, and hopes for quick riches. States should be protecting people not making it easier for them to lose their money.