I upvoted on principle; but I'm gonna try and make some sort of tangential point. Something between a devil's advocate and a lead by example point.

Sports betting is at the very least, based upon a foundation that you can better determine the outcome of a game by knowing a lot about the teams or players involved. There are worse options; slot machines have their odds intentionally skewed to favor "the house", and you WILL lose more than you gain.

The reason I bring this up is this: If one wants to convince gamblers to not waste away their lives, you need to point them towards an alternative with either better odds or a better payout, or both.

If one wanted to shrink gambling to the most high risk players, you'd point the rest to a method to invest into business; as business investment can be thought of as the least risky form of gambling, but over the long term it has the highest return. Moreover, it has an effect on the rest of the economy that can in some cases result in goods becoming cheaper, which is a benefit that the person in question will likely benefit from many times if its a product they consume a lot of.

That said, such an idea would probably require less restrictions to enter such a market; considering that as it stands, one requires identity verification to trade anything even resembling an investment in a company. Its ALMOST like there are worse restrictions on productive behavior than there are on self destructive ones.

On a different note: I could have sworn at the end of this episode there was a letter along the lines of "how do we advance this philosophy when society is resistant to it"... I may be wrong, and even if I'm not I missed what your answer to that was. That said, the person who introduced me to Ancap ideas once told me that over time people will "ignore the government out of existence"... Basically, they first pointed to the fact that when prohibition was in place, it got overturned because the jury refused to prosecute people under that law, and the government was gonna have a revolution if they didn't repeal... I'll leave the other facets they suggested to your imagination.