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.
There is a difference between legalization and encouragement. The state should not encourage eating McDonalds, but we certainly don't want the state to banning McDonalds, either, do we?