Legalized sports gambling lets state governments tax what used to be an illicit and off-the-books activity. But where does the money go, exactly? In some instances, not far: Arkansas allocates 17.5% of its taxed revenue to horse breeding awards and racing purses. And of the $2.7 billion the US states collected in the previous four quarters, less than 2% went directly to those arguably most in need: problem gamblers and the programs built to support them.

Sources: US Census, American Gaming Association, National Conference of State Legislatures, state documents, news reports, Bloomberg reporting.Note: Arizona, Kentucky, Louisiana, Michigan, North Carolina and West Virginia spending breakdowns exclude the share of spending on administrative or regulatory expenditures. In New Jersey and Michigan, sports gambling tax allocations vary according to how or where bets were made, so spending categories were estimated based on recent tax revenue numbers

1. 27.5% for the city and county in Arkansas where the casino is located

2. All revenue in Colorado after administrative costs, …