Morally questionable activity doesn't save a region? Color me surprised!
What's morally questionable about gambling?
Not really gambling itself, but the gaming industry. It tends to prey upon people who gamble with money they can't afford to lose. So long as people gamble with money they don't need, it's not any more objectionable than any other recreational activity people spend money on.
To tack onto this, gambling addictions are fairly common, and if the state is encouraging gambling, either through running lotteries or legalizing it in an attempt to draw revenues into the state, then the state is is playing a role in the exploiting the poor, addicted, and vunerable. That is reprehensible.
It's a bit like if Mississippi started selling heroin from state owned stores to make money. Even if the funds are going to a good cause, the state is incentivised to encourage heroin consumption and is profiting from addiction and poor decisions.