The Southwestern states of New Mexico and Arizona include significant populations of Native Americans. They mostly live in their own reservations in small settlements. Many of them suffer from  great poverty, since the rural, semi-desert areas lack job opportunities. One of the unusual sources of income for Native tribes is the authorization of casinos in reservations. Since the reservations belong directly under the federal government, many of the state laws do not apply to them, including the ban on gambling. Several Native American tribes derive significant income from the casinos operating in their territory, while the casinos also give jobs to locals.