Fact: Posession of lottery tickets is illegal in North Carolina.
Fact: South Carolina and Virginia have state lotteries.
State law enforcement agents have observed cars with NC plates in convenience store parking lots just over the state line, followed them as they crossed back into North Carolina, and busted them. It's an easy $2000 for the state.
I'm sure the cops in NY can be just as innovative when faced with the smuggling of "contraband" cigarettes.