But what if someone sets up a casino where there is no chance of a cash payout? No matter what, the player loses 100% of the money they put in. For some reason we do not regulate this kind of casino at all! It's totally wild. This kind of casino should be the MOST regulated, or banned entirely. Worst of all, we let children participate!
Slot machines that use worthless virtual currency, award only virtual currency, but let you buy virtual currency with real currency? Playing one of those is worse than playing a real slot machine, or even playing a rigged real slot machine! At least both of those have some non-zero chance of paying out real money.
Lootboxes in video games? That's gambling with a 0% payout. All you get are worthless JPGs. And we let children participate!
Crane games at the arcade? Those are just vending machines with programmed odds. They are gambling! We let children play them.
Baseball, Pokemon, or Magic cards? Other collectibles that come in blind boxes or sealed packs? These are gambling! Sure, some will argue that these are different because no matter what you are getting some minimum prize. A pack of Pokemon cards will always contain 10 cards no matter what. Well, what if I make a $5 slot machine that at minimum always pays out 50 cents no matter what you spin? How is that different from a $4.50 slot machine that has the potential to pay out $0? Changing the odds and payouts doesn't make it not gambling.
IMHO, all of these activities should be completely banned for children. No games of chance whatsoever if they cost real money per-play.
As for adults, consenting and informed adults can throw away their money if they want. But all of these activities should be heavily regulated. And the casinos that don't pay out a cent should be MORE heavily regulated than the normal ones.