They have no other option, the only other possibility is to ban gambling and then now you have two problems instead of one, not only you will still have the same number of those addicted to gambling now you need to chase the people behind the now illegal casinos, also it is impossible to limit how much people can gamble, if for example the limit was set to 500 dollars to non-VIP players and an addicted gambler had 5000 dollars then that person will just play in ten different casinos and lose their money anyway.
Another good point. The government needs to weigh things out as problems will show up if they start the ban for this industry, knowing that there are already people who are involve to this business.
Those owners will push the business to run even in terms of illegal activities, money will flow without any benefits for the government
while they need to spent time and money to arrest those illegal gamblers who will continue to play even restrictions already been rule out.
This has happened throughout history and it is not something new, it happened with alcohol, it happened with gambling and it is happening right now with drugs, governments have fought a war against drugs for decades and after the fortunes that have been spent on this and all the lives that have been ruined governments are finally changing their tune as they are realizing that it is useless to keep fighting against something that will never disappear when they can obtain taxes out of it.