Setting a limit on those who want to gamble is good but that will depend on gamblers. The government are difficult to control people in gambling because gambling is about personal decision. But the government can make that as a law so people know and realize that they don't have to go far in gambling. They should prevent the big loss that can happen to them.
But some gamblers can travel outside of the country to gamble because they don't like that regulation. The government can not do anything but they can monitor people from their bank account knowing how much money they use to playing gambling. Gambling problems cannot be easily solved so they need all people to think and solve the matter especially for gamblers.
From what OP stated, I think the government must have seen alot of reviews and talk about how the country has been in a mess with gambling and it's people. They are doing their job to protect the people while making the gambling a safe zone for everyone but if on the other hand the government is just trying to do what they like or it's because they don't like gambling, then this is not the best approach especially if they are doing it to protect ban gambling.
I don't know how some countries operate but in mine, gambling deposit is through bank transaction and banks can detect if you are making deposit to a particular casino accounts. It's going to be very easy for the government to set a minimum deposit to casino either per day or per month or the maximum deposit every gambler can make to a casino in a year and it's that's it. There is no need for all this drag of casino and government restrictions of deposits for people and it will become a law to protect people.