Small business owner Robert Gordon has made millions selling cigarettes and tobacco products from Web sites since 2002.

Gordon, a member of the Seneca Tribe in upstate New York, does not send out catalogs. He does not advertise. Nearly all of his business is online. Last year, he earned $2 million a month, according to court papers. On his site, Gordon proclaims that he does not pay state taxes on cigarettes, passing on the savings to smokers across the country.