Would it actually boost government revenue, or could it backfire and discourage people from gambling altogether, knowing it’s already hard to win and when they finally do, they still have to pay taxes?
Taxes generally are for raising Revenue. The revenue are in tone used by the government to improve the well-being of people who living the country. Gambling taxes do the same thing it is a large industry and the government want some part of it, so that it can go back to the society. These taxes on gambling winnings are in no way discouraging to a gambler. In fact most gamblers will not mind paying the taxes as long as they are winning.