As the casinos revenue is big, they're also making big with the taxes from the casinos themselves and from the players.
That’s supposed to be the expectation, but there’s a possible weakness here, and that’s how regulators actually enforce it. Even if casinos are making a lot of money, if the implementation to ensure proper taxes are paid is weak, the government won’t be able to collect the right amount.
That’s when tax evasion or underreporting happens, and most of the time the government isn’t even aware of it.
And that's how they're being strict with the implementation and tax collections. They know that some might cheat on it.
So, what they do is giving incentives to the ones who are following suit and paying taxes on time. While to those who have intention to cheat the system, they're put with more penalties.
That makes them don't want to cheat and avoid paying taxes, they're voluntarily doing it. That's how the governments are confident that whether you pay or not, you'll have to pay still.
