This has a pro and cons both. Good for those who earning is not much and only have limited money for their survival so in such case losing in gabling will prove to be fatal. On other hand those who have lot of money now will have to also prove it and they might just stay without it.
I don't think those people with a lot of money would be going to face an ombudsman just to prove that he himself can take those losses. If I am one I would just visit other gambling sites or maybe just create another account where I could gamble or maybe just play with other people not known by the government. They would stay gambling but I don't think they would be staying at the same online casino though.