Don't distinguish that it's not only online gambling. I believe that governments that are allowing gambling to penetrate into their people is all about both of them, online and physical casinos. That's one of their blood line and oxygen to make their economy keep going. To source a fund to make their infras and other services to their people and like what everyone is talking about. It's not a secret anymore that they are doing it for the big tax.
Is that really possible? This case occurred in my country, where gambling is prohibited because it violates both the law and religion. However, there are currently many online casinos operating alongside brick-and-mortar casinos. I don't know for sure, but there are certainly some, but I'm not aware of them. The problem is, even though the government knows many online casinos are operating, they haven't done anything better, like eradicating them all.
That's a different thing in your country because if it's including laws and religions, yes it's very possible in other countries that don't include religious beliefs on their laws.
Another case involved a player who bankrupted a casino by winning a huge amount, but the authorities arrested him for allegedly causing losses to the casino. I'm starting to think there's a partnership between the government and casinos, so these casinos have some protection from the government.
This happens to be honest IRL. If someone wins a huge money and ables to bankrupt the casino, the next time he gets in he won't be allowed anymore. And the protection that they get from the government is due to their taxes being paid.