Froma Harrop on smoking in casinos:

Loath to tax the citizenry based on income, many states have increasingly turned to cigarette smokers and gamblers for revenues. Gamblers are often smokers, and both groups tend to be of modest or low income.

So after taxing the daylights out of the working class's cigarettes, states can go for a second helping from the quarters the little people dump into the slot machines. This raises revenues that, in the old days, their better-heeled residents might have had to pay. And the fleeced masses don't know to complain. Bingo, as they say.

And when states ban smoking in all entertainment venues but the casino, they end up securing an especially dependable revenue stream. As public policy goes, this means of taxation is highly unattractive. After all, they are funneling their smoker population into another highly taxed and unhealthy activity. As an added anti-social bonus, they discriminate against other businesses in search of the same entertainment dollar.

[...]

It's so silly that it's almost funny, but many states discriminate among gambling ventures in deciding where people may smoke. They allow smoking at the big casinos while prohibiting it at what's called "little gaming" places that offer bingo (for example, churches or American Legion posts), video lottery terminals, keno or pari-mutuel gambling. Charities that depend on money from bingo nights complain that these smoking bans have sent their customers to the big casinos.

Which sounds right if, as the casino industry says, 70 percent of gamblers also smoke. Hand them a drink (big taxes on alcohol, too), and what do you have? Your tax base.