Number 1 doesn’t really seem like a big deal, to be honest. Most reputable casinos won’t scam their players, 'cause one scam and their whole business could go down. So I think reason number 2 makes more sense.

when people earn more, they tend to gamble more, which leads to higher gambling revenue, that’s real growth for the industry, and it’s not necessarily hurting anyone since most people gamble just for fun or entertainment anyway.