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"we don't give drug money seized from dealers back to the junkies so why would we give back this money to bettors if we deem those funds to be the proceeds of crime?"
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What a comparison. I can never remember if gamblers are criminals or sick joe's who need to be saved from themselves. If someone has been on the path of destruction, clicking a mouse to lose a house, is this how to save him? Confiscate his funds?