3. Yes, but they are designed to be as addictive as possible. I'm quite appalled by online slots (Android, iPhone) where no money is at stake, but coins can be purchased, and the amount of coins purchasable is adjusted based on how much you play. I'm thinking Zynga based games primarily.
5. That's fair but a weak argument. 100% of people who go to the theatre or eat out spend money, but the amount is fixed and known up front. I guess you can say the same for slots when the payout percentage is up front, but still, Vegas wasn't built by giving away money.