Most of the countries actually putting bans on gambling are for religious reasons and that's why it's mostly the middle east region although it's not entirely pin on those areas but I think you get the picture. Other countries are actually utilizing the massive gambling industry which is something that the government are well known for as they always exploit situation to their benefits and one way they achieve this is by taxing the gambling industry which active initiative towards this.
Personally, I think the reason most or some third-world countries try to ban or limit online betting is to avoid the rise of new bettors and underage gambling, since minors and first-time players are especially vulnerable to getting hooked on casinos. And while it’s true that gambling can be regulated, sometimes government officials also use these ‘regulations’ as a way to boost their political image and gain public approval.
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Yes, it's true that players will look for other gambling opportunities, but this only applies to gambling addicts. The rest of the citizens, most of whom are law-abiding, will not violate laws prohibiting gambling and refrain from playing.
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Well, curiosity kills the cat, as some may say. I doubt that "the rest of the citizens" you're referring to might not engage in finding another loophole to gamble their money.
Same with substance, it's technically illegal, but someone who's super curious might still find ways to test to try something new in their lives.