Why paying tax on gambling winnings when government doesn't regulate Gambling?
That question, only they know......!
countries, governments and illegal places are part of third parties, gambling, discos, miners, brothels and other illegal places, this has been going on for a long time from century to century and until now it is still illegal and taxes continue as they are now.
Indeed, in some countries the gambling industry is illegal and some is legal, we are not talking about legal, let's say countries where it is illegal, the fact is that the tax revenue that is paid to the government is more fixed over time and the largest number of industries is illegal, rather than legal ones, for another reason, even though the government does not play a role in controlling gambling directly, they do have a role in it, may not be publicly visible but they are in the gambling department, certainly a major role in those who have power in the country.
Just say in my country, gambling is illegal on the grounds that it violates religious morals, but taxes are still enforced.
For example:
The government in the 2024 RAPBN stated that the gross gambling revenue (GGR) tax is proposed to increase from the current rate of 18% to 22%. Gambling tax rates are currently deemed to need to increase because they have been in effect since 2019.
The government takes the middle path, taxes are taken, online gambling can be accessed and played, it is seen in public as illegal to keep the anti-gambling public unrest, perhaps so.