Legalization of Online Gambling: Analysing Tax Revenue Gains Vs. Increases in Irresponsible Betting Among Low-Income Groups

Online gambling has caused a debate around the world. It weighs the prospective high tax income with high social costs, notably the irresponsible gambling of the non-middle-income populations. In this article, the economic advantages and social merits of legalizing online gambling have been analysed. It examines increased government revenue through taxes and greater gambling addiction and financial distress among vulnerable groups. The paper compares regulations within the United States, the United Kingdom, and India. It assesses the impact of tax regimes in creating fiscal benefits, projected at 15 billion globally in 2025, as well as exacerbating problem gambling. More specifically, low-income groups have 30 per cent more people addicted than before legalization. The article provides an evaluation of these trade-offs based on a comparison approach that involves statistical data, case studies, and regulatory texts. The effective responsible gamut, the unequal distribution of tax funds to prevent negative consequences, and the ethical aspects of the exploitation of vulnerable groups are the major concerns. The results outline that although public services are funded by tax revenues, subpar protection has a disadvantageous effect on low-income bettors. It suggests standardized laws, compulsory addiction-support services, and linear taxation systems to minimize social ills and preserve economic rewards. This discussion is relevant to policy discourse and provides information to lawmakers who have to manage the multifaceted interaction between fiscal policy and social responsibility in the expanding online gambling industry.