By nature, businesses are taxable, so it makes sense that casinos should be taxed. But in some countries, they also tax individual gambling winnings. That got me thinking, what’s the real purpose behind that? Most of us gamblers are overall losers anyway, so what impact does taxing the winnings really have?
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 are generally beneficial to both parties if the government manages them well. Taxes do not stop the gambling industry because when the government has collected it - then gambling is legal. Gamblers will not completely stop gambling even though they sometimes feel they are being treated unfairly because of taxes. Some will find ways to avoid taxes - but that is a bad approach in my opinion.
When the government legalizes something - they will find a way to make money from it. Taxes are one of the sources of government revenue - the gambling industry contributes quite a lot, but poor management is always a problem. I don't think badly of gambling taxes - it's just that the way the government manages them is very disappointing.