...Before, you had to go to a land-based casino, legal or not. People could see you, and they’d talk about you if you were betting hard, especially if you lost or won big. That alone discouraged some from playing.
Since most people play in casinos for the sole purpose of winning, as a result of which they become addicted and eventually lose their money, which they could use more rationally. So maybe it was a good thing that it discouraged some from playing at the casino?