Gambling duties or taxes are a vital source of funding to the New south Wales government and the industry directly employs over 35,000 people. But between 1 and 2 per cent of the adult population, depending on the definition, incur significant difficulties and costs from gambling. Gambling gives pleasure to many but extracts a significant amount of pain from a few. This report provides evidence of the size and distribution of the benefits as well as identifies the costs and their distribution.