But before states start counting their money, they may want to think about these six issues:
The temptation for states to replace unpopular broad-based taxes on income, property, or sales with much narrower taxes such as lotteries-often on low-income people-is high. And tax revenue, collected as income tax on winnings and as an excise tax on casino revenue less those winnings (called gross gaming revenues or GGR), could easily add up. The American Gaming Association (AGS) estimates that $107 billion is wagered on sports illegally each year (though estimating illegal activity is always dicey).
