~snip~
Gambling is originally created as form of entertainment. No one should blame the game but rather they should blame the abusive persons participating in this activities.
There are people exceed on their limitation and do those abuses thinking about they can earn lot of money if they can cheat on the system. Provably the big bosses of this business is been pissed off by those situation and activities done by the victims that's why this situation happens.
Since they already saw the worst situation happen and its like there's syndicate behind this situation its better for government to totally shutdown online gambling and this sabong things in their jurisdiction since if they just regulate it maybe there's another same like case will happen in future.
Even if online gambling is completely banned, it will not solve any problems. As practice shows, when governments begin to strictly control a certain area, it simply goes underground. This is what happens with drugs, alcohol, gambling, weapons, etc. It does not solve any problems but only creates new ones, as the transition to illegal activities allows organized crime groups to earn additional income. I don't think the government is interested in that.