CALIFORNIA REALLY NEEDS GAMBLING.

Byline: Joseph Honig

In hock to pay everyone's bills, California's political class has barely noticed an elephant in the room. Certainly, it's not a popular subject for stump speeches or official conversations. It remains, however, an apparition that could change lives and futures.

The elephant - legalized casino gambling - supports health care, schools and services in a growing number of cash-strapped states. With serious stewardship, it is a paying proposition.

Californians, though, are reluctant to toss the dice.

Yes, the Golden State has allowed limited gambling on Indian reservations. Unfortunately, revenues from such games are not much to speak of. Unless agreements change, Indian casinos will continue to pay arguably insignificant license fees on slot machines. Because tribes possess sovereign immunity - they are, in effect, countries unto themselves - they pay no sales or income taxes. At least not at the moment. This while millions upon millions of California dollars stream toward Las Vegas and Reno. Nevada's crap tables and croupiers rake in some $10 billion a year. We have immense population centers. Nevada doesn't. What's wrong with this picture?

By no measure are we prim or prudish. Not when it comes to card rooms, horse tracks and astonishing sums illegally bet on sporting events. The state's lottery, though occasionally troubled, remains a going concern. So many of our friends and neighbors are not shy when asked to ante up. Further, California gives the world a large measure of its adult entertainment - except, of course, state-regulated casinos that contribute to everyone's welfare.

A generation ago, New Jersey broke Nevada's monopoly on legalized gambling. Today, Atlantic City draws almost 20 million visitors, and Garden State seniors receive deeply subsidized prescription drugs. Education and infrastructure also benefit significantly. And unlike California with its Indian casinos, New Jersey - like Nevada - supports an unblinking gambling control commission. Games and payouts are strictly regulated. Tribal machines can pay, well, what tribes decide is appropriate.

With California leading the nation - and much of the world - in style, innovation, culture and commerce, it is somewhat astonishing that casino gambling has never been one of our front-burner solutions. That is, unless, one considers small fortunes spent by established gambling interests - many Nevada-based - on Sacramento lobbyists. No, those interests are not against blackjack or keno. They just want to keep such pleasures a reasonable commute away - over the state line. In the meantime, canny jurisdictions have grown tired of capital flying down freeways to nearby states. New York's Catskill region, a resort destination once on life support, soon will feature state-of-the-industry gambling. Downtown Detroit and New Orleans already are home to immense casinos. Taxes and jobs have followed. Sinful wages? Maybe. But wages nonetheless.

This is not to say that casinos are sure-fire remedies, free of concerns for law enforcement and psychologists. Some struggle. Some never turn profits. Some hard-working mothers and fathers go suddenly mad, plowing through mortgage payments and college tuitions. California, though, is no nickel-slot player. Our leaders run billion-dollar services with minimal corruption. There is every reason to believe the state can supervise Wall Street conglomerates clamoring for our gambling dollars.

As for social costs, who can say compulsive plungers are not already damaged by poker rooms and Indian roulette? At the moment, Californians have signed a $4 billion marker with Wall Street - interest due on recently approved bailout bonds. Talk about damage. Talk about long-term pain.

From time to time, as in the case of Florida, a casino-resistant Bible belt has blocked legalized gambling. There was a referendum. There was a vote. Gambling lost, and Vegas-in-Miami never came to pass. Here at land's end - despite a vocal family-values crowd - the religious right has yet to sway statewide elections. Accordingly, it's unlikely California casinos would offend a majority of communities.

Unless, of course, we are happy with bailouts through borrowing. Unless we are happy with wallets and bankrolls fleeing our towns and cities for dreamlands far from home.