The expansion of legalized gambling poses a number of issues for policymakers. Two related issues, which have not been dealt with extensively from a public policy perspective, are examined in this commentary: state responsibility for addressing pathological and problem gambling, and the legal status and regulation of Internet gambling. A review of the recommendations of the 1998 National Gambling Impact Study Commission on pathological and problem gambling as well as state policies and practices indicates that little has been accomplished in dealing with the need for education, prevention, and treatment. Confusing and contradictory legislation and policies abound. Internet gambling flourishes, and federal and state governments are ambivalent about legalizing it. Both problem gambling and regulation of Internet gambling urgently need attention. The legalization and regulation of commercial gambling involves a wide range of public policy issues. These include such matters as how jurisdictions decide to legalize gambling in the first place, and what forms of gambling to legalize (e.g., lotteries, casinos, pari-mutuel racing, bingo). Another policy issue faced by jurisdictions that already have some form of legal gambling is the decision of whether or not to expand existing forms or add new ones. Once gambling has been legalized, jurisdictions face the issue of how to regulate it. For gambling businesses to succeed, gamblers need to be confident that the games are honest and that they will be paid if they win. One role of regulatory agencies is to ensure that gambling activities occur in such a manner that these conditions are met. Decisions about all these matters are made in a highly politicized environment and are shaped by a variety of competitive forces. The initial decision to legalize any form of gambling is typically supported by those likely to benefit financially or politically in some way and opposed by…