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In this scenario, I will not accept the father's decision; the fact that he got his money via hard labor does not automatically imply that all of his children should follow in his footsteps. I believe that everyone has their own destiny, and that God can choose to bless anyone in whatever way he sees fit, and that this could be God's method of blessing the son.
Aside from the fact that it is almost impossible for the son to return the money to the gambling company the father should take the money because it is not illegal money; if it were, I would have supported the father, but since it is not, I'm afraid I'd have to congratulate the son.
Well it might not be illegal from your own view and perspective but like zlantann said some religious actually see this act as an ill act and its probably not welcome by them and if the father is a Muslim then I think his reason for rejecting the money justifies his claim but thats if the son is in a stage where he can't decide for himself because possessing such money can even make the son disown the father if its calls for it because money always come with a spirit that changes or amplifies someone character.