States earn a great deal of their revenue from lotteries, casinos, and other games where individuals place wagers or bets. Texas is no exception and operates a state lottery with the intention of funding public schools. Texas law also authorizes the state to garnish one's lottery winnings for the payment of child support or back taxes. The state also allows the following types of gambling: horse racing, dog racing, and raffles sponsored by charitable organizations. For bingo, Texas levies a 3 percent tax on the rental cost of the facility. Click on a link below to learn more about Texas gambling and lottery laws.