In the end, the license is very important for every casino that wants to operate because the government has begun to realize the growth of the gambling industry and a lot of money in gambling, so regulation is very important for the common good, even though we know taxation is also very important as a source of state revenue, so they do this very firmly on every casino that does not comply with regulations, closing the site is the right step if using the government's perspective, wrong and right when assessing this is whether the casinos that are closed have been given the opportunity to register their business in order to get certification to have an operating license, if they have had the opportunity before the closure is carried out then it is the right step, but if they are not given the opportunity of course it is an inappropriate step.
What you said is the truth, if closing or shutting down this number of gambling sites was done to right some wrongs in terms of doing the right thing I think Brasil is in the track, am very much against witch hunting but the right thing should be done, there should be regulation after all there is a government in that country and I believe its for the good of the country at large, gambling companies shouldn't be operating through the back door, if they want to do business in any country, it should be done appropriately.
Gambling companies are making a lot money so they shouldn't be left untaxed, regulation will make these companies not to default on gamblers side too.
You have said it all which I believe is the right thing, if what the government did is to get their attention in other to correct somethings then its fine, very soon many country will do the same to gambling companies that are operating in their country but not ready to comply to their terms.