In my opinion, governments should only tax casinos and gamblers who win very large jackpots, but unfortunately, this isn't happening. Casinos and gamblers are taxed heavily. To make matters worse, governments haven't encouraged healthcare companies to train specialists who can quickly help gambling addicts. Now, regarding what governments do with taxes, unfortunately, many governments take taxes from citizens to use for their own purposes. As a result, the country doesn't develop as it should.
Government doesn't have a sympathy for tax, the reason why Government do demands for tax from all gambling website is because they seems gambling as one of the things that's causes or instigate corruption
Secondly, Government uses tax collection to boast their internal generated revenues, so for me that's is one of the reasons why Government is taking revenues from gamblers depends the country you find your self, they're some countries that tax a gambler that wins, and in some countries they only focus on the gambling platforms or be selective in the gambling website that will pay tax