Operating a business that defrauds people is the domain of government enforcement.
I think you’re trying to reduce this to some sort of small scale friendly poker game between friends. It was not. It was an organized crime business operation that was systematically committing fraud.
Fraud is illegal and within scope of government enforcement.
The state / society needs to enforce a basic level of trust for Business A to buy widgets from Business B, and for Customer C to be employed, etc.
Betting on sports / poker / etc. is not part of that. Nobody is creating anything of value when you spin the roulette wheel. At best, the house wins and most players lose... and that is a harm to society. At worst, the house cheats or some subset of players cheat, and most players lose... and that too is a harm to society. (Edit: At worse worst, it leads to violence, extortion, etc...)
Gambling does not deserve the legitimacy of being policed.