federal law, there are significant restrictions pertaining to interstate and online gambling, as each state is free to regulate or prohibit the practice within its borders. The American Gaming Association breaks gambling down into the following categories: This has brought about morally questionable issues, such as states' using marketing firms to increase their market share, or to develop new programs when old forms of gambling do not raise as much money. Some states restrict this revenue to specific forms of expenditures, usually oriented toward education, while others allow lottery revenues to be spent on general government. Other states followed suit, and now the majority of the states run some type of lottery to raise funds for state operations.

No state governments had previously directly run gambling operations to raise money. When New Hampshire authorized a state lottery in 1963, it represented a major shift in social policy. Sometimes states advertise revenues from certain games to be devoted to particular needs, such as education. These include everything from bingo games in church basements, to multimillion-dollar poker tournaments. Many levels of government have authorized multiple forms of gambling in an effort to raise money for needed services without raising direct taxes. Main article: History of gambling in the United States Authorized types

Online gaming vs online gambling