I think that the regulations and rules that were set in place by many governments are not sufficient enough to prevent gamblers from making drastic actions in their lives, especially to those facing severe depression, anxiety and addiction in gambling and other things related to it. Mental health I think should also be considered as a big loss would definitely affect their capability to interact in the real world. Make laws that would only allow gamblers with a strong mental faculty and just allow those who don't to only play lottery and small town legal gambling that only needs very small bets.
The problem is that gambling isn't really supposed to be legal or tolerated in the first place. A good law would allow people to only bet but not gamble (*bet but don't gamble*). Gambling is taking big risk in bets. It is opposite of safe/responsible bet.
Gambling is irresponsible, unsafe, risky betting.