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?
Increase in taxes will not stop gamblers from gambling neither will it stop casinos from continuing their operations just as increase in tariffs didn't stop customers from buying goods neither did it stop manufacturers from running their business. It only increase the operational cost which was passed down to the consumers, their customers. It is the same thing that casino operators will do. The tax will simply be passed down to their customers. And the customers don't care as long as they continue to get maximum entertainment from their time betting. I am referring to the responsible gamblers here. If it will reduce the rate of gambling, well, I don't think so. People will adaption to new realities and move on like nothing happened.