Legalized gambling provides a major new source of revenue for the state Kurk The real reasons so many forms of gambling are illegal in so many states are that governments are grossly hypocritical and arbitrary when it comes to their gambling laws tambling governments see themselves as nanny states with their citizens as children who need to be protected from vice and their own stupidity.hochuck casino in wisconsin ONLINE CASINOS WITH FREE TOURNAMENTS Seeing as how Hawaii, along with Utah, is one of the only two states in the country where gambling is illegal, Hawaii residents visit Las Vegas to delight in part in guilty Why gamble? What good can come from gambling? Gambling can help our economy by keeping money here in out on state. islands have something to add to why gambling is no allowed in Hawaii. The Mormon Church and that cultural background makes the distaste for gambling understandable in Utah, but what is it about Hawaii and games of chance? Eric Ford Sentenced for Illegal Hawaiian Gambling Operation. Only two states make gambling completely illegal (even Bingo) which are Hawaii and Utah. Other states outlaw certain types of gambling. Your question then becomes: " Why are most forms of gambling illegal?".