Still on the case, if the punishment of accounts blocking is the price that ignoramus and stubborn gamblers has to pay, what does the casino do with such money after then? Do they convert the money for themselves or they have an authority they pay such money to?
The casinos keep the money, this is very clear in the casinos' TOS where it says that if someone is found to have too many accounts, cheating or involved in money laundering the casino reserves the right to block that person's accounts and confiscate all of that person's funds.
The casino will not give the government the money if the customer is involved in money laundering, unless the government through the court orders issues an order asking for the money and the customer's details to take him to prison.