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?
Taxing gamblers isn't meant to discourage gambling but rather it's a way for the government to raise more money for their activities, gamblers are not supposed to be taxed as most gamblers lose more than they win over time, 99 percent if not actually 100 percent of gamblers end up in loses after a long term of gambling.
But unfortunately, the government really do not care at all about this as they keep demanding that gamblers pay the required tax, and gambler do not have any choice but to pay.
Like I've said before, government are not taking this money as a way to discourage gambling, they are simply greedy and it's the reason we see them taking money from both casinos and gamblers for tax.