Unironically, "blockchain fixes this".

Decentralized prediction/betting markets, on public consensus ledgers (blockchains), can't exclude the best bettors. And, match bettors and clear markets with far less overhead/"vig" – resulting in fairer, market-set odds.

That leaves less room for a small clique of enterprises whose profits are driven by problem betting, and thus capable & incentivized to engage in manipulative marketing, and misleading product offerings, to find and drive the vulnerable to "extinction". (That's a term of art in gambling design, see https://alum.mit.edu/slice/play-extinction-research-reveals-....)

The regulation and licensing of privileged franchises to state-approved entities has made such entities more able to exploit compulsive gamblers than a free and open system would.

Many states have even gotten into the business themselves, with lotteries offering atrocious odds, promoted with deceptive advertising, overwhelmingly patronized by the poorer & more-innumerate.

Go figure!