Right, but as exploitive as those things are, they're still regulated and taxed as gambling. The regs may be a joke, but they exist. Like in some places they're required to remind the player about addiction concerns and direct them to help for it, and to fund those programs. And part of the reason that states (and provinces here in Canada) were so gung-ho on the liberalization of gambling is that they take a fat cut.

aside: recreational gambling should require a federal ID with losses tracked online, and if you're down more than 10% of last year's after-tax income you're cut off for the rest of the year, but I assume the Canadian and especially US constitutions rules against doing good things federally make that impossible.