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Author Topic: Taxes on gambling send the right message?  (Read 3464 times)
paxmao (OP)
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July 14, 2021, 10:37:29 PM
Merited by Silberman (1)
 #1

I was thinking that many countries are reluctant to legalise certain activities such as gambling, prostitution, smoking, ... and, apart from countries that have strong social and religious restrictions (I refer to those as the death-by-boredom countries) others simply consider than the state should not profit or allow activities that are considered diminishing for the workers or that may harm their health and personal relations (it must be difficult to be an addict to gambling or a prostitute and have a normal life).

However, other countries simply set high taxes to these activities, which I think is a false morality, as if by paying these activities can be less questionable. (Note: I personally do not question regulated gambling).

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July 14, 2021, 10:54:33 PM
Merited by paxmao (1)
 #2

However, other countries simply set high taxes to these activities, which I think is a false morality, as if by paying these activities can be less questionable. (Note: I personally do not question regulated gambling).

We can compare it to the usual sin tax which just makes sense that their tax is higher because whatever the circumstances, situations, and even amid the global pandemic, they can generate an insane revenue as activities under it are already part of people's daily social life.

On the other hand, having a high tax was also a formed to discourage people from involving in it although like I mentioned, since it's now a part of people's usual activity, they will found a way to spend money on it e.g liquors, cigarettes, and gambling. Another advantage of this high tax is, illegal gambling operators that don't want to comply with the high tax, will be aggressively shut down by the authorities since the government doesn't have benefits for it. Other operators will be forced to pay the tax for them to make it legal and that will be an advantage to the government.

Can you mention a gambling-friendly country that sets an insane high tax on gambling or the country you are referring here in the subject? Or if you are pointing about the other threads like Nigeria or Ukraine if I remember it right, the government there has its own reason why they decided to put a high tax on it and we can't generally apply it to all other countries.

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July 14, 2021, 11:43:19 PM
Merited by paxmao (1)
 #3

I was thinking that many countries are reluctant to legalise certain activities such as gambling, prostitution, smoking, ... and, apart from countries that have strong social and religious restrictions (I refer to those as the death-by-boredom countries) others simply consider than the state should not profit or allow activities that are considered diminishing for the workers or that may harm their health and personal relations (it must be difficult to be an addict to gambling or a prostitute and have a normal life).

However, other countries simply set high taxes to these activities, which I think is a false morality, as if by paying these activities can be less questionable. (Note: I personally do not question regulated gambling).
Whether they do like or not, whether they do ban or impose high taxes then these things cant really be stopped no matter what and if its prohibited then they would just simply go underground
or decided not to be traceable or something like that. Even if they would be taxed up high then it would be still able for them to pay and as a government and not relying about religious aspects
then you would see the brighter side about those taxes accumulated and you would mind much about your citizens situation in terms on involving into those things.

R


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July 15, 2021, 01:51:36 AM
Merited by paxmao (1)
 #4

However, other countries simply set high taxes to these activities, which I think is a false morality, as if by paying these activities can be less questionable. (Note: I personally do not question regulated gambling).

I definitely agree. I may not call it a false morality, though. In the first place, the state is not saying gambling is now better because it gives more revenue. It is simply implementing a mechanism which will hopefully curb the proliferation of gambling. It simply tries to discourage gambling.

However, I will also question its effectivity. In the end, increasing gambling taxes would only widen the gap between the privileged and the poor. Gambling does not transform into a good thing. It would only become a luxury which only the rich can afford. Is there something wrong with it? I guess it does not sound right to say, "only you can do this bad thing because you've got the money."

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July 15, 2021, 03:53:02 AM
Merited by CryptopreneurBrainboss (1), paxmao (1), Smartvirus (1)
 #5

I was thinking that many countries are reluctant to legalise certain activities such as gambling, prostitution, smoking, ... and, apart from countries that have strong social and religious restrictions (I refer to those as the death-by-boredom countries) others simply consider than the state should not profit or allow activities that are considered diminishing for the workers or that may harm their health and personal relations (it must be difficult to be an addict to gambling or a prostitute and have a normal life).
A country with poor governance is liable to have higher rates of gamblers most especially with inflation skyrocketed. In such situations people look for means of survival and therefore might not give much attention to government restrictions since the same government can't make the life fair for it's citizens. Imagine biting a child and asking the child not to cry. Most of the addiction from gambling and other social vices is as a result of the same people in authority depriving their subject the right to good existence.
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July 15, 2021, 05:16:44 AM
 #6

I was thinking that many countries are reluctant to legalise certain activities such as gambling, prostitution, smoking, ... and, apart from countries that have strong social and religious restrictions (I refer to those as the death-by-boredom countries) others simply consider than the state should not profit or allow activities that are considered diminishing for the workers or that may harm their health and personal relations (it must be difficult to be an addict to gambling or a prostitute and have a normal life.
Legalizing most of this encourages hoodlums and touts in a any society and also make it looks as if the government aren't trying enough for it's citizens. It could also cause harm and depression to the citizens mostly when things goes wrong or when the target is quite difficult to hit. This activities has in the past caused series of deformities in the life's of it's victim there by making the society a sort of joke and I believe this could be one of the reasons government in most society decides to place restrictions on them.

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July 15, 2021, 05:50:30 AM
Merited by paxmao (2)
 #7


There are many reasons why they make all these illegal with some given circumstances, you don't want your family member to be among the people who got into these activities. Tobacco, Prostitution, and Gambling are done underground if they are not going to make it legal, there will be no way for the government to make money out of it if it's going to be still illegal.

So in order for the operators to conduct business legally,  the government has to make money. Fair trade.
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July 15, 2021, 06:12:33 AM
Merited by paxmao (2)
 #8

However, other countries simply set high taxes to these activities, which I think is a false morality, as if by paying these activities can be less questionable. (Note: I personally do not question regulated gambling).

I don't think it's false morality, but rather a pragmatic issue. Prostitution and gambling have existed since time immemorial and if you prohibit them what you are doing is putting the people who frequent those worlds in even more danger. Look at what happened with Prohibition. If you are a secular state it is better to offer a legal framework, and collect taxes, otherwise these businesses are run by mafias who will not pay taxes.

What is better? That gambling and prostitution be controlled by the government and controlled by the mafias?

For me the decision is clear.

In an ideal world nobody would gamble, or prostitute themselves, or take drugs, or play sports, or read books... but we are in the real world.


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July 15, 2021, 06:23:52 AM
Merited by paxmao (2)
 #9

That's how it works, if you want to make money legally comply with the government and if not the government will hunt you because they need the money and you are oblige to pay taxes if you're into gambling, though in some countries individual are not oblige to declare their personal income including their gambling activities, it is the casinos who will pay the tax. I don't feel paying any taxes every time I go to casinos, I have my budget and I spend that money in gambling alone. However, paying taxes wont stop those illegal gambler, there's a big money on that and greedy people will bite it.
Research about rules, laws and regulations in your nation. If you don't want to be in jail because your break laws, DYOR before you start.

I know the advise sounds stupid because it is very basic but people don't mind to read ToS on platforms they will use and store their capital. Capital should never be stored on gambling sites too long. Because they can be shut down by governments.

In some nations, gaming is not legal so online and crypto gambling site are not allowed.

R


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July 15, 2021, 06:27:47 AM
Last edit: July 16, 2021, 07:38:24 AM by Wexnident
Merited by paxmao (1)
 #10

I actually like countries regulating gambling instead of straight out banning it. After all, has banning gambling done anything? Maybe in the short run, but in the long run? Nah, that thing's just gonna be a long-ass sentence about bans and stuff and people would probably still be able to find ways to gamble if they really wanted to, not to mention that creating a gambling den in a banned country would probably bring in more profits for them.

Regulated gambling conditions basically allow the country to put the business in their hands, man handle it and what not. They can assure that it's within limits and wouldn't exceed past that.

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July 15, 2021, 08:02:06 AM
Merited by paxmao (1)
 #11

Taxes on gambling send the right message? The answer is not, even though goverment have a goal to reduce their citizens from gambling but in my opinion it is the amount of money that can be obtained from the gambling tax that makes the state take high taxes, and high taxes will not reduce asking gamblers to continue gambling.

However, paying taxes wont stop those illegal gambler, there's a big money on that and greedy people will bite it.
And this is backed up by corrupt officials because they see a large circulation of money

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July 15, 2021, 08:14:16 AM
Merited by paxmao (2)
 #12

(it must be difficult to be an addict to gambling or a prostitute and have a normal life).
About gambling, I was an addicted before, I first gambled in 2014, I remembered to first win my first bet that I just took it without professionalism. But at the time I was additced until 2019 when I lost money and properties to the extent I wish my life to be taking. It was just hard to kill myself at the time but I wish me dead, I really know how deadly gambling addiction is. I really got no hope again until I stopped gambling, I later got source of income and not even gambling again, even if I want to gamble now, I use 2% of my monthly salary to gamble or not gambling at all.

As to your question, in my high opinion, taxes on gambling do not send the right message at all. The tax collected are mostly from the betting companies. The reason is that the betting companies are the one gaining while the gamblers are losing.

Did you know most gamblers do not know about taxes paid by gamblers? The reason is because most gamblers are losing than winning. Before tax can be deducted from their winning, all there losses will be calculated, if the losses is more than the winning, no tax will be deducted. I believe this is the gambling policy in almost all countries that gambling is allowed.

If the gamblers are not paying taxes (because of losses), how does increasing the gambling tax send the right message? It does not because gamblers are not still yet paying because they lose than win. While the gambling companies are increasing in wealth and able to pay their taxes.

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July 15, 2021, 08:25:35 AM
 #13

However, other countries simply set high taxes to these activities, which I think is a false morality, as if by paying these activities can be less questionable. (Note: I personally do not question regulated gambling).

I don't think it's false morality, but rather a pragmatic issue. Prostitution and gambling have existed since time immemorial and if you prohibit them what you are doing is putting the people who frequent those worlds in even more danger. Look at what happened with Prohibition. If you are a secular state it is better to offer a legal framework, and collect taxes, otherwise these businesses are run by mafias who will not pay taxes.

What is better? That gambling and prostitution be controlled by the government and controlled by the mafias?

For me the decision is clear.

In an ideal world nobody would gamble, or prostitute themselves, or take drugs, or play sports, or read books... but we are in the real world.

this is the reality of life and yes, regulating is better than totally banning their existence. it has been here ever since. if the government will be hypocrite and decide to wipe these kind of businesses, those activities will just go underground and the govt will not get anything from it. so yeah, it is better if such activities are under the government control. at least the money that they can get can be of good use to govt initiatives.

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July 15, 2021, 09:12:28 AM
 #14

....and have a normal life).


This is the focus of government, to direct people to normal life through regulations and penalties for defaulters. Some religious countries try to wipe their system off from those activities you mentioned and there won't be any need for tasking on them. However, the Countries that have not been strict on then, the liberal countries would have them tasked because they give chance for you to make a choice and be liable to its penalties.
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July 15, 2021, 09:50:02 AM
Merited by paxmao (2)
 #15

However, other countries simply set high taxes to these activities, which I think is a false morality,
I've heard discussions about gambling taxes, cigarettes by the government, this is outside the tax rules set by the state.

The reason the government raises high tax rates on the gambling and cigarette industries, they receive a lot of complaints from various media, hospitals, rehabilitation of the biggest cases the cause is gambling and cigarettes.

In fact, the government has raised tax rates for the gambling and cigarette industries more than the industry thought, The goal is to reduce people's involvement in gambling and prevent people from smoking cigarettes, even worse, the industry applies it all to addicts, in the end people continue to gamble and smoke, don't stop, they buy in small quantities / also gamble in small amounts.

The effect that arises from high taxes does not actually create a deterrent effect on addicts, it is considered normal, Thus the tax that is set does not make the morale of addicts have a negative effect.

I think that's why it is necessary to impose higher taxes on the gambling and cigarette industry, actually the goal is good for the community, but it doesn't have a positive impact on society, it's even worse, beyond expectation.

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July 15, 2021, 10:24:46 AM
 #16

Like what I previously mentioned in similar topics like these, the power to tax includes the power to destroy. If the tax implemented by the government is higher than the usual rate, then it implies that the government is trying to convince other establishments to avoid creating businesses like this.

There are, however, certain gambling casinos that the government allows. In the Philippines, there is what you call PAGCOR (Philippine Amusement and Gaming Corporation) in which it is created by law. It enjoys certain benefits since it brings so much revenue to the government that allows the latter to create certain projects for the benefit of the country.

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July 15, 2021, 11:57:02 AM
 #17

I was thinking that many countries are reluctant to legalise certain activities such as gambling, prostitution, smoking, ... and, apart from countries that have strong social and religious restrictions (I refer to those as the death-by-boredom countries) others simply consider than the state should not profit or allow activities that are considered diminishing for the workers or that may harm their health and personal relations (it must be difficult to be an addict to gambling or a prostitute and have a normal life).

However, other countries simply set high taxes to these activities, which I think is a false morality, as if by paying these activities can be less questionable. (Note: I personally do not question regulated gambling).

Illegal gambling activities happen in almost every country. It doesn't really matter what the law says. Gamblers find their way of gambling and with the progress of telecommunications nd internet, it has become even more easier nowadays. Now you don't have to go out of your house to gamble. Just a phone call works splendidly well.

So I see no harm in imposing taxes on gambling activities instead of banning it. Gambling is a business whih generates employment and provides revenue to the government. So it's a wise step to follow which will create a win win situation for gambling business, gamblers and government. Everybody is happy!

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July 15, 2021, 12:01:49 PM
 #18

However, other countries simply set high taxes to these activities, which I think is a false morality, as if by paying these activities can be less questionable. (Note: I personally do not question regulated gambling).

In my opinion, only the employees and the casino should taxes . not for users. because gambling doesnt like fix income and if you lose do you have to pay taxes too? I think that would be unfair. they should not just take advantage of other people that making money from gambling. 
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July 15, 2021, 12:19:36 PM
 #19

I was thinking that many countries are reluctant to legalise certain activities such as gambling, prostitution, smoking, ... and, apart from countries that have strong social and religious restrictions (I refer to those as the death-by-boredom countries) others simply consider than the state should not profit or allow activities that are considered diminishing for the workers or that may harm their health and personal relations (it must be difficult to be an addict to gambling or a prostitute and have a normal life).

However, other countries simply set high taxes to these activities, which I think is a false morality, as if by paying these activities can be less questionable. (Note: I personally do not question regulated gambling).

Prostitution, smoking, gambling do not make the life of a working person worse if you do not abuse them. If you work (in almost any job) 12-16 hours a day, then this will have a huge negative effect on the body, but this does not mean that any work should be recognized as harmful and taxes immoral.

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July 15, 2021, 12:45:48 PM
 #20

However, other countries simply set high taxes to these activities, which I think is a false morality, as if by paying these activities can be less questionable. (Note: I personally do not question regulated gambling).

I'm in favor of heavily taxing everything that causes harm to society.
It isn't a question of morality but of reducing as much as possible the incentives for products and services such as smoking, alcoholic beverages, prostitution and gambling to be consumed.
Because the taxes that are collected there should be used to "remedy" the problems caused by these products and services in people who insist on consuming them.
Of course, on the other hand, its necessary to reduce taxes on basic products and services such as food, medicines, water, energy, and others.

This is a controversial topic and that is just my opinion.

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REGIONAL
SPONSOR
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EUROPEAN
BETTING
PARTNER
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