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People love all kinds shit that is objectively bad for them... sugar, heroin, gambling, cryptocurrency.What's not on this list is... toys with flashing lights :).
That is to say, just because casinos use flashing lights and loud sounds too, doesn't mean it's bad per se. And, as I understand it, lights and sounds in casinos are more intense - perhaps they're aiming for light sensory overload.
And personally, I prefer my kid play with that one educational sound/lightboard we got (and that I keep repeatedly fixing after she breaks it), rather than do what many parents I know do - give their 1+ y.o.'s smartphones with videos to play with.