Allocating 1% of total income to gambling is not a bad decision. But many gamblers will see that amount as too small because it will be difficult to win big with $10, except if you are lucky enough to win a jackpot.
However, no fixed amount or percentage should be allocated to gambling. The best option is to gamble with an amount you can afford to lose. This is because people have different costs and standards of living.
1% is almost nothing, not only for the rich people but also for the middle-class people, as well as for the lower-class people. Those who are usually gambling will never gamble with 1% of their earnings. People gambling without a budget or a budget with an amount that they can afford if they lose, except addicted gamblers. Addicted gamblers can't have any sense of what will happen if the person loses after reinvesting/ which they can't afford.