Revenue that never was isn't really lost is it? Before the Vegas style casinos there were small non tribal card rooms. The big dollars didn't hit until slot machines. If you remember the state was intercepting shipments of slot machines headed for reservations long before Gregoire. And after the tribes were allowed slots we voted and said no to non tribal slots.

Here is a good read as to why the governor you love to hate can't do a damned thing about it:

http://en.wikipedia.org/wiki/Indian_Gaming_Regulatory_Act