Addiction Markets

  But if you want to outlaw this harmful activity [licensed gambling], you have to find a way to replace 6.4% of Maryland’s budget, which is slightly less than the entire amount the state brings in from corporate taxes.

A fraction of the proceeds of losing bets from a fraction of Maryland's citizens contributes almost the same to state services -- EMS, education, road maintenance, etc -- than the total corporate taxes levied on all businesses.

Do I misunderstand, or is this just actually incredible?

Incredibly damning, yes

Damning which way, though? Are gambling taxes too high, or are corporate taxes too low? And since corporate income is surely higher than gambling income, I’m inclined to think that gambling taxes are too high AND corporate taxes are too low, creating this odd fact.

Edit: and I know it sounds weird to say that gambling taxes are too high, when one could argue that high taxes are meant to disincentivize a thing - but if that thing is highly addictive, and if no other state action is taken to disincentivize that thing, then it’s actually a really sticky income source for the government who now doesn’t want to get rid of their cash cow. Tobacco ads are outlawed, which did more than taxing tobacco. Gambling ads are absurdly common.

When you lose (most people, most of the time), you don't have to pay tax on winnings because there aren't any. But gambling itself seems like sort of a regressive tax that preys upon those susceptible to gambling.

Edit: at least with state lotteries the state gets most of the money so it is more like a tax; in the case of corporate sports betting the corporation takes the money and then pays a small corporate tax on it.

> When you lose (most people, most of the time)

For modern gambling (not including some prediction market setups) its actually all of the people (still allowed to play), most of the time.

Because if you win regularly they limit or outright ban you from playing. If they keep letting you play they have determined algorithmically that you're statistically a loser over time.

So not only is this easy access to online/app-based gambling financially devastating for those predisposed to become addicted to it, its also effectively legally rigged in that the house has no obligation to take bets from people who are actually good at it, and they have all the data they need to detect that very quickly.

Do you have proof to back up this claim? I know there are professional people and organizations (companies) that are heavy into prediction and sports betting, they are not getting throttled.