Do you think that casinos would continue to want to operate in Brazil with these taxes? I am assuming that as a result, casinos would offer higher prices on their services as well due to the taxes and would most likely drive away customers. Would this eradicate the gambling sector altogether?
The casinos will continue to operate even if taxes are raised. The problem is that the higher taxes may discourage some gamblers from playing at legal casinos, so gamblers may choose to play at online platforms or illegal casinos where they can avoid paying more taxes. This may allow the Brazilian government to collect more taxes in the short term, but there will be more people playing outside of legal platforms and maybe new casinos will think twice about taking care of their legality and choose to play on the black market. Even though the Brazilian government will fight these illegal players, I don't think they can completely stop more people from playing on illegal platforms. So in the end the Brazilian government will lose the potential of the gambling sector in their country.