In the past government pursued a moralistic and paternalistic policy with regard to gambling. However, in many countries, governments have relaxed regulations, whilst not treating gambling quite like other goods. This relaxation of regulations benefits many people who like to gamble, but has led to a growing issue of problem gamblers and addicts: gambling harms not only their welfare, but also that of their families. This chapter examines the issue of problem gambling, and how the gambling industry both exploits and also tries to help them. It argues that whilst government has recognized problem gambling, it could focus regulation more directly, given our knowledge of how people become addicted and what sort of gambling machines cause the greatest problems. Using Norway as a case study, the chapter demonstrates how specific regulations can have a big effect.