Which doesn't make sense to me, given that:
A) We already educate people about addictive behaviors, and it's not that effective, and
B) If you're going to allow potentially-addictive gambling at all, you probably want to do it in a way such that people must overcome a major barrier to engage in it, like a plane flight or a long drive, which is already accomplished by the centralization of gambling in Las Vegas.
So, the gaudy money-hungry casinos in the middle of nowhere are a lot closer to the ideal gods-eye-view casino than Scott Alexander suggests.
(Not to mention the ecosystem around entertainment there that has produced positive-sum results like magic shows and boxing matches.)