That said, there is already a problem with the ubiquity of gambling in our society - the worst are the State rackets (lotteries). And it is my concern when gambling addicts and their families go on welfare or the bums steal to support their habits.
It's not an easy question, but I don't think we gain anything by "regularlizing" this industry. It was better when gambling (and porn) were illegal. One could always find them, but being illegal, one could also avoid them if one wished. Part of the allure of gambling in the old days was that it was illegal.
Gambling is more and more evolving into something that is not just the house taking gamblers money. Not that there was ever anything wrong with that either - people who choose to trade dollars for entertainment value should have the freedom to do so.
But nowadays, there are sports betting and poker communities with almost zero juice - which makes it essentially the stock market, although a zero-sum one. At its base, it is two people wagering and the one that has better information or ability than the other one profits in the long run. The losers go bankrupt, or get smart first and quit playing.
Which is pretty much how most money is earned in this country.
I think your better instinct was the “it’s not the government’s business” answer.