Governments can do a lot of things to control people's vices gambling being one of them.

But if they see that they are making a good amount of taxation from games like lotteries which are often government sponsored and taxing the casinos why they will try to ban them?

The ultimate objective of any government is for the ruling party to make money. So they will extort it through taxation and licenses and many others.

Religious people are old enough to decide on their own if they want to gamble or not. Nobody needs to babysit them for it.