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?
Do you think that with taxes imposed on individual gamblers when they win will limit gamblers from continuing gambling? I don't think so. This is an attempt by the government to get more taxes. They may intend to discourage their citizens from continuing gambling, but with the large tax contributions from gambling, they may not want to lose one of the country's sources of income. That's what happens to gamblers, getting a win is already difficult, but when they get it, gamblers still have to share the fun with the government.
They just use the word to discourage gambler an excuse just to get money from people.
But in reality this implementation has no effect since gamblers will continue to play despite of they are been asked to pay taxes on their winnings.
If they ban or put higher fines to those people who will be caught gambling people would possibly get afraid to gamble again since they get scared to participate on this activity especially if they know that authorities will possibly sue them for participating on gambling activities.