Is it illegal in the USA to spend your benefits on gambling? If yes, somebody should probably report him to authorities.
We can do what we want with our money. It is none of anyone's business.
It's money given to you by the government it's their business to make sure that you need that money for legit reasons. You can call it your money when you start working.
p.s This might help:
Work:
Activity involving mental or
physical effort done in order to
achieve a
purpose or
result.
He is doing physical work (jerking off 24/7) and while doing so has one hand free to scam people (hard mental work).