Is taxing gamblers meant to raise revenue or discourage gambling?

[Awaklara]

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?

Do you think that with taxes imposed on individual gamblers when they win will limit gamblers from continuing gambling? I don't think so. This is an attempt by the government to get more taxes. They may intend to discourage their citizens from continuing gambling, but with the large tax contributions from gambling, they may not want to lose one of the country's sources of income. That's what happens to gamblers, getting a win is already difficult, but when they get it, gamblers still have to share the fun with the government.

[Taskford]

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?

Do you think that with taxes imposed on individual gamblers when they win will limit gamblers from continuing gambling? I don't think so. This is an attempt by the government to get more taxes. They may intend to discourage their citizens from continuing gambling, but with the large tax contributions from gambling, they may not want to lose one of the country's sources of income. That's what happens to gamblers, getting a win is already difficult, but when they get it, gamblers still have to share the fun with the government.

They just use the word to discourage gambler an excuse just to get money from people.

But in reality this implementation has no effect since gamblers will continue to play despite of they are been asked to pay taxes on their winnings.

If they ban or put higher fines to those people who will be caught gambling people would possibly get afraid to gamble again since they get scared to participate on this activity especially if they know that authorities will possibly sue them for participating on gambling activities.

[Dr.Bitcoin_Strange]

Imo the only purpose of taxing gamblers is to follow «income tax» compliance. I dont think that the goal of any tax is to discourage from something. As government gain funds for budget from taxes, they definitely not plan to discourage citizens from something by collecting taxes. Dont forget that gamblers pay tax not from every win, but when their winning are higher than stated in gambling law amount.

I did agree too that the purpose they tax gamblers is not to discourage them because if that's the purpose, it's not even the tax method they will use to achieve it. They want to generate revenue for the country, but In my opinion, gambling is not a source income, so why charge income tax on what's not a reliable source of income? Although in my country, there's not be any tax on gamblers.

[₿itcoin]

Do you think that with taxes imposed on individual gamblers when they win will limit gamblers from continuing gambling? I don't think so. This is an attempt by the government to get more taxes. They may intend to discourage their citizens from continuing gambling, but with the large tax contributions from gambling, they may not want to lose one of the country's sources of income. That's what happens to gamblers, getting a win is already difficult, but when they get it, gamblers still have to share the fun with the government.

The government sees gamblers as pit bosses, they know very well there is no way gamblers resign if taxes are increased instead it fills state coffers. You know Gambling taxes increase every year and the cash flows in. But does it control our habits? Not really, regular gamblers just keep playing any way. Think of offline bans, countries like Cambodia / Turkey ban gambling, yet people still bet through illegal channels. This tells you,  taxation or outlawing  will not stop gamblers any way, it just pushes them into the shadows.

A smart play? Legalize gambling under strict rules, catch it, regulate it, tax it and use that revenue to fund addiction support and regulation. I'v seen an EU report where it proved online gambling taxes have not driven gamblers away from legal website, but rather have destroyed efforts to reduce harm by pushing them overseas gambling website. So yes, governments should tax gambling I'm not against it, but only within a regulated & responsible framework. Outright ban or higher tax increases, this only empowers the black market, and it is a losing bet for everyone.

[Russlenat]

I did agree too that the purpose they tax gamblers is not to discourage them because if that's the purpose, it's not even the tax method they will use to achieve it. They want to generate revenue for the country, but In my opinion, gambling is not a source income, so why charge income tax on what's not a reliable source of income? Although in my country, there's not be any tax on gamblers.

You got a big point there, gambling isn’t really a source of income for the players, it’s for the operators. So it should be the operators who get taxed, and just leave us alone to enjoy the game. It’s not fun anymore when we win and still have to think about paying taxes.

The more we aim for big wins, the more we also worry about bigger taxes. That kills the fun. But the government doesn’t really care, all they want is to squeeze more money out of us, even if it means bleeding us dry.

[lienfaye]

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?

Well, I don't think paying for tax if you win can discourage gamblers to play just because of that specific reason. Come to think of it, majority of gamblers are just losing their money in gambling but did they stop? It didn't became a hindrance to still continue playing.

So what more if you already win? Paying for tax after winning is just a piece of cake as the Government wants to share some of it. Moreover it's mandated therefore any winners who win especially if it's a decent amount needs to comply in order for things to go smoothly.

[Ziskinberg]

<> Moreover it's mandated therefore any winners who win especially if it's a decent amount needs to comply in order for things to go smoothly.

Pay if you don’t want to run into problems, because if you fail to do so, you might end up paying even more with penalties, and that’s something none of us want to deal with. The issue is the government makes it all too complicated. Gambling is supposed to be entertainment, but filing taxes feels like a chore, and one mistake could already lead to penalties.

I guess it’s smarter for some to just gamble with overseas or even illegal casinos, where there’s no tax and you can keep more of your winnings. But always consider how strict the law enforcement is in your country, so you’ll know the right way to go about it.

[Natalim]

Most gamblers do not completely feel this because they don't win big. But the casino owners do. Asking for taxes from gamblers will benefit the government, not discourage gamblers. In some places, casinos implement a huge entrance fee for their local gamblers, which is more effective. But I don't think it affects it when most gamblers are now in online gambling. I believe this is killing the strict implementation of taxing gamblers. And this will probably force the government to collect higher taxes on gambling sites/casinos.

[sheenshane]

Imo the only purpose of taxing gamblers is to follow «income tax» compliance. I dont think that the goal of any tax is to discourage from something. As government gain funds for budget from taxes, they definitely not plan to discourage citizens from something by collecting taxes. Dont forget that gamblers pay tax not from every win, but when their winning are higher than stated in gambling law amount.

It seems you have a point here.
Yes, you become taxed when you have a huge amount to win.
Sometimes I think this is how our tax system and federal spending operate, and I understand it why we are subject or obligue to getting taxed, and being taxed is natural since it represents our revenue from gambling.  Though it isn't regarded as our source of income, you only get taxed when you win a large amount, not a small one.

I don't see discouragement from the government here, all I see is a straightforward business that they desire.

[nelson4lov]

If government collect tax from gamblers, that qualifies as an addition in my books so it's net positive for government revenue book so yes, it boost government earnings.

I also don't think government care so much whether you gamble or not.

As long as:
— you don't grow above the system (aka more losses so you don't outgrow the average citizen)

— they have final control over the casino

Gambling wouldn't exist if governments didn't approve of it. The fact that they're taxing it means it's for the benefit of the government not the citizen in this case because if you lose money while gambling, they don't sharein your losses.

[mirakal]

I would want to say it could discourage especially those new gamblers, but what I am seeing right now is that gambling industry is even making more a trend in the line of business. Millions of gamblers come to gamble everyday, regardless of the possibility taxing their winnings. So I guess taxing these gamblers aren’t a big deal for them, since all they think are focused on how to maximize their gambling profits.

[_BlackStar]

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?

Taxes are generally beneficial to both parties if the government manages them well. Taxes do not stop the gambling industry because when the government has collected it - then gambling is legal. Gamblers will not completely stop gambling even though they sometimes feel they are being treated unfairly because of taxes. Some will find ways to avoid taxes - but that is a bad approach in my opinion.

When the government legalizes something - they will find a way to make money from it. Taxes are one of the sources of government revenue - the gambling industry contributes quite a lot, but poor management is always a problem. I don't think badly of gambling taxes - it's just that the way the government manages them is very disappointing.

[GigaBit]

If the government tries to extract revenue from individuals, it will not increase revenue but will discourage it. No gambler will ever be motivated to contribute. And if pressure is applied, it will only make gamblers more hostile to the government of that country. Moreover, I do not know how a gambler can be able to contribute revenue from the individual level. While it may seem appropriate to give revenue to gamblers who win, it will be a burden to pay taxes to those who lose. And such a system cannot last very long, and the amount of revenue the government gets from the entire gambling industry will also decrease.

[finaleshot2016]

Actually, it's both because the government always think that gambling space is one of the major sources of funds. So that's why they keep putting tax to it and of course, it's like hitting 2 birds in 1 stone, so they're also encouraging people not to gamble. But here's the reality, there are some countries that doesn't really care about its people and it's just a narrative for them to show they care. Some countries use the tax system as a kind of soft regulation to limit people gambling so it depends on the tax if it's huge or nah, you can determine what's the country objective through taxes and if it make sense or not, if its reasonable.

[alastantiger]

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?

There isn't anything that the government can do to discourage people from gambling because people won't mind giving the government 50% of the rewards they get because they already considered the money that they're winning from gambling as a free gift. The taxing was done for the government revenue and not because the government are interested in stopping people from gambling. The government only cares more about the revenue they're getting and not about what their citizens are suffering. The government can't stop anyone from gambling because people can still do it hidden when they make gambling illegal in the country. Doing that is also going to make the government to be missing out of revenue that the could have been getting from the casinos.

[Hispo]

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?

Both, it is intended for the government to get money to keep functioning, but also it is intended to discourage people to gamble, knowing part of their winnings are supposed to be declared to their government and then given away.
It is similar to what western governments do when comes to tobacco or alcohol, they highly tax those products in order to discourage the local population to further consume them in the long term or at the very least to reduce the consumption in the long term, because most of smokers and drinkers will realize the impact those products will have on their budgets if they consumed them regularly. In the case of gambling, since the house always wins, it is logical to tax casinos, but gamblers lose their money most of the time. To be fair those governments which enforce taxes on winning gamblers also offer the option to declare gambling losses, so they would not pay as much as they usually do of they were not involved in casinos and bookies, at least, that is how it works in the United States.

[Ale88]

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?

In the majority of countries lottery winnings are taxed, heavily taxed actually, and for the governments gambling is a great source of income. Probably they (I refer to the governments) see no big problems taxing the winnings because they see them as free money and for the person who wins 50% of something is still better than nothing so, in their opinion, that person just got a lot of free money so it's more than fair to tax them. That's probably how they see it.

[Fivestar4everMVP]

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.

[Botnake]

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.

Got it, and it seems like that’s also the opinion of most people, that it’s not really about discouraging gamblers, but more about being greedy. I think it’s a bit too much, but whatever you call it, it’s clearly their way to increase income at our expense.

We’re just lucky that here in our country, even though winnings are technically taxable, it’s not strictly enforced. And it also helps that I’ve been able to gamble in different unlicensed casinos, so they wouldn’t even know I’m gambling in the first place.

[crwth]

Maybe it's not just about raising revenue. I'm thinking that the different gambling businesses would lead to funding addiction support, if there are any, and maybe mental health with rehabilitation programs.

The taxes collected by the government from gamblers should be used for the right purposes, in my opinion. It can be discouraging, but you know how people react to it, and they continue to gamble.