Normally such money should go to the government but I've never heard of such happening before when a casino returns money back to the government and j think that should be the right thing to do, but I don't think there are acting based on or working with government agents but rather anyone who defaults the law they trace I and lawfully retain the money but they don't submit it to the government.
Which government? I'll give you a typical situation that happens all the time.
The casino owner is from counytry A.
The casino is registered in country B and it gets its license from there.
The player is from country C.
The person whose money was stolen is from country D.
Often the person who lost the money lost it on an exchange or platform registered in country E and that's where the theft occured.
Who should get the money?