| Not true about the gambling: a CG character that took the bet and lost, and caused suffering, would have caused as much evil as a NG or LG. The only thing we could say about gambling is that they would approach it differently: for example, the CG might trust his guts the he will have luck, the LG might calculate his chances of succes and decide wether or not the odds are worth it. Mind you, this is just an example.
But you hit the nail on the head with the Nazi example: they used order and laws to inflict great harm and suffering. It's easier for underlings to deflect blame to their superiors that way, and thus make the atrocities easier to commit. After all, you were only following orders.
This conflict of L&C and G&E often leads to lots of debates about paladins and their code: If their lawful superior gives them an evil command, should they break the L-part or the G-part? Personally, I feel they should be Good before Lawful, but that's how *I* view the code. | 
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