What kind of protection you are talking here?
I think when a gambling site is regulated, they will have to follow a certain rules and once they break that rules, they will have to face the consequences according to the law/rules. I think that's the kind of protection we can get from the government.
If regulatory to online gambling casino will be push through then high chances that it will going to centralization. This is the problem with the government because they are not really at help when they will just make online gambling casino as milking cow getting taxes and licences for them
but the service for protection is not being done and mosy government are reactive to phenomenon. Since online gambling is new then high chances that government could be facing difficulties in solving the problems that will be encounter.
its not a weakness but its a normal requirement not only for a gambling place but also to any other business . its not money that are given to someone else for them to use personaly but its a tax that will be used for important occasions .
legal sites online are still being tax , so you cant say that building sites online can make you escape those obligations.
Yes, no one can escap taxes unless you want to get a hufe penalty from the government. Most of business owners are aware of huge penalty so they do not have choice but to follow the government mandate.
It's up to the tax payers if they will pay or not, but at least they should make themselves aware of the consequences if they got caught, that's too risky but there are still people who are evading taxes.