People are too greedy for my liking, no one needs to stop gambling for any reasons if they can just do it in a very sensible way, if I am making $500 in a month and I am risking $40 on gambling I will never consider a lost $40 in a month a loss, we can even still go down on price if we want.
I make less than $200 in my business every week and I risk $ 5 to $10 on gambling in a week, it doesn't make me feel anything because I gamble like someone who don't take a sweat on it, that money is too small for me to have mood swings or get angry, this days you can even use as less as $0.20 to gamble, I don't know the problem with gamblers.
That's the problem, most people can't gamble wisely, they tend to do it outside of a sensible context, and you're right, we can determine the amount to allocate for gambling, whatever it is, because that is our right, but the problem is that only wise people can set the amount and be disciplined and consistent with the amount they set.
The amount you get and use for gambling is fine, because you're only risking a small portion of it. If you can be consistent with that, with a maximum of $10 a month, then you can say you're gambling wisely.