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I do not understand why towns want this kind of law. What is the driving force behind the politicians who pass it?

And in a town like Colma can't Lucky Chances just corrupt it or cheat? What is their malfunction?

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I think typically towns/states institute these kinds of laws in the hopes of stopping people from becoming raving gamble-aholics and flushing their lives away. Or at least, stopping them from doing it quickly.

Lots of states/counties do it actually, Florida and Washington come to mind immediately, and Colorado too.