Question is, before states implemented legalized lotteries, where did people spend this money? Bookies, horses, craps, betting pools at work, smokey card house

Question is, before states implemented legalized lotteries, where did people spend this money? Bookies, horses, craps, betting pools at work, smokey card houses, gambling parlors? Do we make all this illegal, put alcohol, tobacco, prostitution, pro sports and weed into that bucket too. All unnecessary and transfer wealth. On the other hand, yeah, I'm not sure the argument by the state that hey, it's vice, we'll regulate it and hand the profits over to schools (etc.) is an honest one. Often they dip into the fund for unrelated things.