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SACKGROUND 5 <br />The Legs lature also changed the gambling tax from a sales tax of six percent <br />41 0 - 0 <br />Of gToss, receipts to, a special tax of ten percent of gross receipts minus prizes. <br />Although much of the regulatory control shifted to the state, local govem- <br />ments still retained the, night to restrict gambling activities and disapprove <br />license-applications.1 <br />