I remember when gambling was actually just illegal in most of the USA.
In my state, it was the state run lotto that was used to sell the idea "Hey we'll take lottery proceeds and fund education with it!!!!!". Of course, state-run lottery was legalized, and yes, the proceeds did run schools.
The next funding session, they CUT the existing funding to schools and had the lottery run the bulk of the funding. They naturally never said that part out loud.
And riverboat gambling was a quazi-legal thing. Then casinos were legalized. Then normalized gambling everywhere. Even the local groceries have state-run lotto vending machines that gobble 20's and 50's for a chance to strike it rich, or more likely, get poorer.
I prefer when gambling was decriminalized individually, but not endorsed for the state or companies to run. I also don't want cop squads cracking down on the penny or quarter games in peoples' houses.
I honestly think we had a pretty good middle ground with people having to go to Vegas/Reno/AC to gamble. It can be fun, but you have to go out of your way to do it. If you have a fun Vegas weekend and blow a bunch of money once in a while, that seems pretty okay relative to being able to constantly bet on anything from your phone.
Sounds like Illinois
Indiana, but yeah, close for sure.
I think it was Illinois' state lotto that encouraged Indiana to also unrestrict it initially for government based gambling ($1 scratchoffs and weekly lotto drawing). Pretty sure they also did the "school budget scam" by transferring tax proceeds from the lotto instead of adding it as well.
Again, though, news in the 1980's didnt have as much traveling power, unless it showed up in the NY Times or other national level papers. And the local papers actuually did local news then.