In my country (Australia) ALL gambling winnings and profits are 100% tax free.
You don't have to declare it because it is considered a hobby.
In the USA and other countries gambling winnings are treated the same as income and gambling companies are required by law to withhold federal income taxes.
If I had to pay taxes I would quit gambling. The risk wouldn't be worth it.
Does your country tax gambling winnings and if so do you declare it yourself or does the gambling operator withhold the taxes on your behalf?
I think the government do not really cares about our opinion even though we keep agitating about whether gambling winnings need to be taxed or not. There are so many people that have lost so much funds and if the government starts taxing people from all their winnings then I see it as unfair because of the time they were making loses and nit earning money. The profit might be in a form to recover the most funds. If we don't win to today and win tomorrow that could be a form to recover our lost bet of yesterday and if the government is collect their tax because we have win a bet and not to compensate us for losses then I still think that this is selfish.
It depends on what type of government you have. We cannot generalize this as not all countries have the same law, and in fact, in our country, I think our governmnet does not tax gambling winnings as personally I haven't paid any taxes at all. So I can say that our government is gambling friendly and they understand that gamblers does not make money, it's the gambling sites or the casinos.
Taxing gambling winnings is probably just another way to discourage gambling, so if us gamblers feel it's unfair since we are not winning all the time, then most likely we will think of stopping gambling if we don't want to break the law, or just continue gmabling without paying taxes and take the risk.