The major issue and reason why I think banning gambling in a country entirely is not a good idea is that it's not complete solution to prevent gambling addiction, though I agree that it can significantly reduce it.
Banning gambling comes with a big sacrifice, meaning the government will lose a chunk of revenue. They just need to really think it through. If other countries can allow gambling and still make good income from it, then maybe the issue isn’t gambling itself, but the lack of proper policies.
So I think the real problem they need to fix first is the addiction. If they can’t solve that, then maybe that’s when a ban should be considered as a last option.