If the government want to fight this, they first need to banned physical gambling place around school area. You find it difficult to see tertiary institutions that doesn't have a gambling place where student comes and waste their money unless it's far from town. School public wifi also need to banned some casino website, this way they wouldn't be able to access some popular casino online. This might not be the best solution but it will do some control to student gambling addiction.
Maybe this your suggestion will work to an extent but to a large extent, it won't work because students can still gamble online. Gambling has come to stay whether you like it or not because since the coming of the online gambling and casinos, gambling has gotten a wider coverage and can’t be controlled because even when the countries governments try to control it, people will still use VPNs to have access to the gambling sites.
When I was in school there were some gaming places around the school where student used to play games for fun. Those gaming shops have gradually disappeared because of online games and online casinos. Students can now easily play their favorite games online while sitting at home and they are even getting involved in online casinos. No matter what kind of government restrictions or bans on online gambling students use VPN. Students try to gamble by hiding the age and most of the time they harm their studies and become addicted to gambling. The steps taken by the government to ban online gambling sites are largely not being implemented due to the use of VPN and they are becoming addicted. This is the most terrible aspect of a society.
To prevent students from gambling, parents should be vigilant about their phone and computer use and regularly monitor their every activity.