After years of failed attempts, Maryland legalized as many as 12,000 lottery terminals, partly to block Delaware, Pennsylvania and West Virginia from siphoning off gamblers. The proliferation of new sites has put states at risk of cannibalizing one another's revenues. New York state collects about 66 percent of that 40 cents in taxes, while the lottery and breeder purses get another 7 to 8 percent, Murphy said.