You sound more like a citizen from Brazil, but I doubt that is the case. Friend, let us not look at things on one side because we are gamblers, and we understand the pain of completely shutting down casinos in the country especially those who are in agony since most of the casinos are still holding their funds in them. We should look at other possible reasons for the government to take such action. Gambling is very addictive, and I am not a Brazilian, so I don't know what they are going through in terms of the effect of gambling on a person Brazilian citizen, or the entire society. Judging from movies it seems people in Brazil are mostly into drugs, gambling, and other activities which is a problem still in other countries. Shutting down gambling can be a way of not entertaining drug dealers and reducing the massive growth of prostitution and gambling addiction. We do know that people take dirty actions when they are addicted to gambling just for gambling capital.
Speaking from what you have said so far. Your points are valid. It's wise we still acknowledge the positive impact of gambling on the economy of a country. Brazil is not an exception here. If gambling is one sector where they can generate more funds for taxes and the country's revenue, then the government should be ready to find another means to generate the funds. If no other way, then it will affect the economy in a downturn. Making things worst for the citizens and its worst because gamblers who rely on gambling to survive will be poor.
No matter how much the government collects here, the money will go down the drain, that is, most of it will not return to the population, only to pay the bills and debts of a government that never stops spending, doesn't cut costs and still spends on political luxuries and pensions.
There is no proven relationship between the ban or strong regulation of these casinos and the reduction of prostitution or drug trafficking. Even if they ban casinos, addicts will only be marginalized to the point of consuming anything prohibited. And banning something in brazil means nothing. Here, animal game (jogo do bixo) has been banned for generations and you can find it in fake bars.
There is no point in the government collecting so much tax but not managing it well. Countries that legalize gambling do not always solve their fiscal problems with excessive taxation.
I think you have a somewhat stereotypical view of brazil. Most of the time, when foreigners try to portray brazil through soap operas, games and media in general, they always end up exaggerating too much. See the example of the game Max Payne 3 where they mix several elements such as betrayal, the birth of a brazilian folklore legend (totally random). Sources below.
https://killscreen.com/previously/articles/max-payne-3-review/Love and Ladies: The Birth of Baby Curupira in Max Payne 3!Love and Ladies: The Birth of Baby Curupira in Max Payne 3 (VIDEO)