This is the main reason why many gamblers and traders hate to pay the taxes. In my country, there is a strict rule to pay 30% of the withdrawals as tax. No matter if you win or lose, if you made withdrawals at any exchange to your bank account, you are forced to pay the taxes. For this reason many gamblers and traders are using decentralized exchanges to cash out their money. If the tax was limited to 3-5%, then everyone would have shown support to pay the taxes, but anything above 10% is too much.
Our loss is not their obligation anymore and if they will have a repayment for it, then it is like we are unstoppable, which is weird. I wouldn't use that as an excuse to evade my responsibility of paying taxes. Apart from using a DEX, what about using a non-custodial wallet? Anyway, not all can afford a 30 percent of tax at most occasions, so yeah, maybe they need to introduce a lower one for those lesser fortunate individuals.
In my country, there is a strict rule to pay 30% of the withdrawals as tax. No matter if you win or lose
I think most of those who withdrew are winners, especially in gambling, as it is slight different from trading where skills can matter the most. There are also those who withdraw but still down or only breakeven, so 30 percent tax will still be a bit painful for them.