Taxation as a Policy Instrument For Social and Economic Effects of Gambling

Abstract

The personal and social benefits and harms of gambling, which has been more accessible, diversified, and widespread thanks to global internet use, sometimes find their place in country agendas. Due to its characteristics, the gambling sector requires effective management through public policies. In this direction, governments determine sectoral policies in two ways: by choosing to ban gambling activities completely or by regulating the sector by legalizing certain types. In this context, taxes stand out as one of the policy tools adopted by many countries. This research aimed to evaluate the success of taxes–as a public policy tool–in controlling the social and economic effects of the gambling industry. Through a systematic review, the role and success of taxation against the social and economic influences of gambling have been evaluated in light of literature research and application examples. The present study revealed that taxes, as a policy tool, are insufficient and may lead to undesirable results in combating gambling, which has limited-positive contributions to the country's economies but harms society by creating severe addictions and other irreversible social costs.