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Are we like living in a fucked-up post-scientific revolution phase of the dark ages? Cause no way in hell the catholic church would allow someone like him to be at one of the highest seat of power in the Christian Power Hierarchy ...
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That is obvious, the Catholic Church would never stand for something like this, if you pay closer attention to the OP information, you will realize this is the case of the leader of a religious sect which probably has little or no recognition by the Vatican.
Only because a sect prays to God and virgin Mary does not automatically means they have the blessing of the Vatican or the Catholic Church as institution.
Anyways, I would be more worried on whatever it could be going on behind the walls of that sect. It is well documented sects are quite negative and harmful for those who join them, and it is likely that bishop uses those gambling earnings to keep his followers/victims attached to the sect and to himself. Have you ever heard or read about the tragedy of the People's Temple Church? It is an extreme example, but it is a good one on how bad things can go in a sect, specially in money is being used as a tool to manipulate people within.