This is really complicated since somehow government is benefiting thru taxes they can get also possible kick backs from those casino owners.
What do you mean government are benefiting
somehow? They get gambling and income taxes from business if casinos are operating white. Why would government interfere if the processing is working perfectly? Casinos earn, casinos pay taxes. I dont think government should interfere in their citizens private life and limit what they can do with their money, if they are used on legal activities and goods.
Why everyone want government to solve their problems? For example I love to eat, I can not not eat for a day. Which department of government should I apply with my hunger problem? Also I dont like to pay VAT on food.