In a capitalist system, gambling has a lot of negative externalities that go far beyond the individuals participating. It must be carefully controlled. In some countries like Monaco, citizens can’t gamble, but foreigners can do so freely.
Many developed countries are struggling with birth rates for example. Should that be regulated? It is harming countries much more than gambling could ever have. The whole right-wing resurgence happening across western democracies is a direct consequence of lower birth rates demanding offshoring and immigration.
The kind of folks who will take that offer are more likely to be terrible parents.