How horrible the daugher should be feeling to witness such an incident.
It really is heart breaking to see a father do this to his child. It kind of breaks the trust factor between the family.
If the person is stealing from his own family then there are chances that he must be stealing from other places too.
I think the family should get him to quit gambling and only then the family will be able to sustain the relationship.
Many families have been broken due to gambling addiction, and it looks like this also happen to them soon. As I put the shoe on his daughter, I feel like I've been robbed, and not just trust has been gone but also respect. Maybe I will understand if he politely borrows the money, but since it was stealing, that is a different story. Even if he says sorry and asks for forgiveness, it still appears in my mind, and I think about it.
If I were in the daughter's shoes I could never trust anybody ever again, not even my future partner.
Besides that, just think what if the daughter starts doing the same things when she grows up.
It's like teaching your children the wrong things because they learn only from their elders.