The state should not prohibit citizens from accessing encrypted games without reason.
When the game endangers the health of most citizens.
The state will take action to prohibit the use or access of this encrypted game.
Depending on rampant of such problem but if it turns out to be on normal scale then it wouldnt really be that much of a problem since there would be no prohibition or something like that.
Just like here on my country where gambling operators that do came from other countries is allowed to operate here as long they would be regulated or licensed.
There are countries which do ban access or simply the sites are making restrictions due to law issues or regulation on each country.
If there's complained and the government see the validity of such allegations the possibilities
of banning the site is more likely to happened.
The government may act according to how they see the damages than can be done by the games
that hyping inside their jurisdictions.
IP ban is very possible and if the government is serious about taking it down they can closely monitor
the website.