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?
It only drive away 10%-20% of the customers, loyal gamblers still stay.
You need to know places like night bars, casinos, and other high spending entertainment won't die, they only die if there's another better place or the regulation forbid them. Many millionaires and billionaires are on such place, they make connection in there.
Their money are more than the tax they have to pay.