Final answer:
The impact of sports gambling on state revenue is uncertain and can have different effects. Money spent on attending professional sports events can reallocate spending and potentially shrink the local economy. However, tribal reservations with casinos have generated significant gambling revenues for funding schools and colleges.
Step-by-step explanation:
The impact of sports gambling on state revenue is uncertain, as it can have different effects in different situations. Siegfried and Zimbalist argue that money spent on attending professional sports events is money that was not spent on other forms of entertainment, causing a reallocation of spending and potentially shrinking the local economy. On the other hand, the development of casinos on tribal reservations has generated significant gambling revenues, which have been critical in funding schools and colleges for some tribes.