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.
This is the exact reason why people stopped paying taxes in my country because the funds are not used for the development of the country, the law makers use these monies for their own personal interests. Taxes on gambling was almost implemented in my country but the law was disagreed by a lot of people, not every gambler or casino makes the same amount of money, so it wouldn't be fair for them to pay Taxes equally
Not yet established here that gamblers must pay tax, it's just the casinos and bookies that are only paying tax, in some other countries gamblers are made to pay tax whether you win big or not but that's not the case, for the poor gamblers that are losing their money to the casinos and bookies, how does the money goes back to them? Ok, even if gamblers are to pay tax from their winnings, are they not still the one losing? We can agree that they lose many times to the casinos and when they finally win, they pay a certain percent as tax.