[pessimizer]

No casino gambling. Casino gambling is not gambling. It's putting $1.00 into a machine and getting $0.80 back, but the exact refund amount after every dollar put in is arbitrary. There's absolutely no risk to the casino, the casino is not gambling. The only gambling being done is by individual bettors, and they have an expected massive loss.

I don't care very much if people gamble with each other, and expect $1 back for every $1 they put in.* But casino games and lootboxes are specifically designed for consistent losses to the house. It's simply another tax, but on the addicted, desperate, and/or innumerate. The weakest people at their weakest moments; and if we're not protecting them, the government has no purpose.

* I actually think that it is good for people who have the same wealth levels to gamble with each other, as long as the outcomes are largely random. The problem is with vigs, and with pots that get too large to cover against a house that can endlessly extend itself.

[walkabout]

Yeah, I think you nailed it. A ban on playing against "the house" would do it. Taking a fixed amount from each pot (as at poker tables) for play among patrons would still be allowed, but slot machines wouldn't. Your solution's much better than a full ban because it wouldn't drive as much illegal betting (a problem no only because it circumvents the law, but because for gambling in particular but for any black market, really, it tends to become connected with other criminal activity)