Maybe some small minority of mods make money, and Reddit turns a blind eye.
But it's certainly not the majority, and the further back in time you go, the number gets significantly lower.
I'm still coming to terms with the fact that the internet has changed. The people who do it for money completely outcompete those who do it for passion.
especially for gambling and illegal/unregulated gambling related stuff
eg @ /r/sportsbook /r/gambling /r/casino /r/<insert casino brand here> etc etc
because of course audience + parasite hosting (google likes to rank reddit for lots of queries)