Welcome to centralization of online gambling. I will going to express the same thoughts over and over again regarding on centralization of online gambling.
First - the government will ask KYC on all users in a gambling platform which is dangerous if identities in that platfoem will get compromise.
Do you have deposits in banks? If yes, then you trust the bank although the authorities could ask information from them regarding their depositors and clients, the same treatment would happen with casinos if they are regulated.
Just think of this.
Which is more risky, government asking information or casinos not regulated where we trust them with our money?
second - license will be issue before they can operate and expect taxes too for protection to which it is not guarantee by the government to uphold the authority. Most officials are corrupt and they can be easily get tempted by offer especially when it comes to making a favor from the online gambling.
That's only an assumption, maybe some countries have corrupt government but you can't use that reasoning in general as there are countries which officials are honest and their countries are progressive. With you statement, the main reason you disagree with regulation is because you think government are corrupt, am I right?
third - penalty will be high whe online gambling will violate the mandate of the government when it comes to gambling.
That's even good for us gamblers, it will protect us and that would prevent them from cheating us and the government, because if they don't cheat, we can still benefit even if we lose as they will pay the right taxes.
fourth - high transaction fee will be deducted to all user include taxes and possible percentage to be taken from the government especially from lottery or jackpot.
I don't mind paying taxes if I win in lottery.
fifth - scammers will still be there and will not be eradicated because in gambling the scammers are already part of the gambling system.
I guess that should do already and this is why we should not let government interfere with online gambing. Let the gamblers left with choices to play in gambling.
It will not be eradicated but it will minimize their actions, with a law that will punished them, they might think twice than no regulation at all where they can be too confident to scam the gamblers.