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> Don't legally recognize gambling debts. If people lose a bet they can pay it if they want to, but the law wouldn't recognize or enforce the debt.

Correct, and you take it a step farther. People don't pay even if they want, both parties engaging in gambling are penalized.



To penalize them, you have to identify them first. Gambling is like corruption, in that two innocent activities (a game and a transfer of money) are combined, and you need to prove that link to prove that gambling occurred.




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