"Vegas dream" had black jack and poker and all the rest of the games you would find at a casino. How is it any different?
"Nor did you have the option to spend real dollars"
How is a 12 year old going to spend real dollars? Where are the parents?
"Would you rather your son or daughter be coked up in order to learn about the perils of drug use or is that different and something that makes sense to teach through observation?"
It's different. Cocaine is physically addictive and can have real health effects. Something I don't ever want my kids touching.
Gambling is all about being able to manage risk..something you do almost every day. You can't ever be successful without some form of gambling. If you teach kids early, they will be able to recognize it and it will beneficial to their future.
Would you just put your kid in front of an iPhone and not watch them? We don't have enough responsible parents in this world. Too many parents use the iPhone (or computer or gaming system) as a baby sitting device or are too busy to actually parent them.