The government is aimed at collecting taxes, and I think gambling brings them significant revenue, just like the sale of alcohol, so they will not restrict what generates money.
It's all fundamentally a matter of value, and it can be withdrawn from both sectors to the state treasury. Legalization and government prohibitions in certain areas are also not without reason. If it's already part of the culture in a place and the community's economic level is good, why should there be a ban? The existing tax revenue from both items is quite helpful. However, in areas that don't meet the requirements and conflict with them, implementation will be difficult.
Agreed, the government aren't supposed to be babysitting anyone, it's their responsibility to be gambling with knowing their limits and avoiding things that'll make them get out of control. We're responsible for our actions hence we shouldn't drink and be gambling when we know we have some drinking problems. Imagine combining things that you're having problem controlling.
Of course, if somebody can control it, there's no problem with the fear of errors in playing that cause money to disappear without a penny being returned, even though the classic excuse emerged after realizing it was just for fun.