States commonly dedicate lotto revenue to particular programs such as education, professional solutions, or environmental management. That amount does not consist of earnings from tribal online casinos, which typically are not controlled or taxed by state and local governments. Nevertheless, some states collect earnings from tribal gambling establishments via revenue-sharing contracts with the operating tribes. Incomes from betting are frequently lumped in with various other forms of “transgression tax obligations.” But unlike tax obligations on cigarettes, as an example, state and local governments do not tax obligation gambling to discourage individuals from it. In fact, the majority of states advertise and encourage state-approved betting.