Can gambling taxes be a source of revenue for development, or are they simply another tool for corrupt officials to enrich themselves? Imagine a scenario where a significant portion of this tax revenue gets diverted away from public services and into the pockets of a few. Such a scenario would undermine the very purpose of taxation.
The concern about corruption in developing countries plagued by embezzlement is well-founded. Without strong institutions and transparent governance, tax revenue can become a target for exploitation. However, dismissing taxation entirely throws away a potential source of income for public services. This revenue could be used to improve education, healthcare, and infrastructure, benefiting everyone.
Tax from when it came to existence have always been the government's source of income and will always be. Diversion of of public funds by government officials is one thing that's majorly affected the development of many countries but with my knowledge of how transparent the Brazilian government have been over the years and the ability of the country's security agencies to prosecute public office holders who decided to embezzle public funds, I don't think the primary reason of this particular policy concerning gambling companies and payment of taxes has anything to do with the personal interest of government officials in the country.
Corruption is without doubt one of the problems of Brazil as a country but the recent technology advancement in the country have made it very difficult for the country's politicians to embezzle money without being caught. I think it's absolutely a good thing to place tax on the gambling companies because they've been gaining from the public and should be mandated to pay taxes