Politicians, looking for a quick fix for budget woes, are turning to gambling. It is hoped that funds generated from gaming will legitimize years of profligate spending habits and negate the need to cut programs. Gambling supporters claim casino revenue will bail out state economies. If you believe that, however, you are backing a horse running in the wrong direction.

“A tell-tale sign America’s chips are down: States are increasingly turning to gambling to plug budget holes,” reports the Associated Press.

Fourteen states are now considering proposals to expand slots or casinos. “Who wouldn’t be interested if you’re a politician who needs to fund programs?” asked Bo Bernhard of the International Gaming Institute.

And since states are in such poor financial condition, “from the gambling industry’s point of view, this is their big chance,” says Earl Grinols, an economics professor at Baylor University. Analysts indicate that recent initiatives are noteworthy for both volume and scope.

But as Bernhard indicated, politicians chasing additional money to spend is hardly news. In fact, casino construction has grown very rapidly over recent decades.

Many people forget that prior to 1990, in the United States only Las Vegas and Atlantic City had legal casinos. Today, casinos are present in 48 states, sucking $54 billion in annual revenue from patrons. That is a significant source of revenue that some state politicians would like to expand at a time when many states are running multibillion-dollar deficits.

The problem is that although gambling revenue may temporarily boost state coffers, it does nothing to fix underlying economic conditions or long-term state budget problems.

When you factor in the resulting social problems, increase in crime, and the fact that casino revenues act like a tax—pulling money from the local economy that could otherwise be spent on more productive activity and redistributing it to casino owners and government coffers—gambling is certainly a net detriment to economies on a state level. And many gambling establishments do little to bring in outside revenue. How many Japanese and European tourists do you see bringing money to casinos in rural Kansas or Mississippi?

States have had legalized gambling for 18 years now. Over that time period, state budgets have deteriorated to the point where, this year, states collectively will experience an estimated $350 billion shortfall. It is little wonder state governments are petitioning the federal government for bailout money. Obviously, gambling does not help budgetary problems.

It is also obvious that gambling does not increase family wealth. So how politicians can reason that it will increase state wealth, or national wealth, is astounding.

For desperate families burdened with record debt levels, stuck in the midst of the worst job market in years, state gambling promotion couldn’t come at a worse time. Although many casinos are reporting drops in revenue, more than half of the states with lotteries have reported rising sales over the past six months—despite the onset of the recession.

Turning to gambling to solve economic problems is like working as a furniture mover to pay for medical treatment for a reoccurring bad back. The solution makes the problem worse.

That states would consider embracing money schemes that come with so many well-documented social costs is a clear indicator of how desperate states are becoming.

Read “America’s Collapse” to learn why the U.S. is in this economic predicament.