One of the reasons why gambling is legal in some countries is because maybe casinos pay taxes which benefits the government, but something that benefits the government does not mean it makes the people prosperous, and I think there is no other better solution than making gambling illegal in the country. This is if the government really wants its people to avoid various bad disasters caused by gambling.
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Taxation of casinos might not affect people directly, but indirectly they make a huge contribution to society and people. As it's not like casinos, or gamblers in casinos would need to be the major tax payers. Taxes help countries and their citizens no matter if one believes them or not. Without them countries would most likely fail. There are few exceptions, but those places are mostly for rich people. Corruption is wild in them, as there's no reason not to have it. You don't want to be poor and live in those countries from all the places.
Imho other problems can be fixed via regulation so countries can benefit from them. Making casinos illegal wouldn't serve anyone.