re: the morality of the situation. this guy lost a million dollars in one year playing video poker. That's an addiction and it is certainly amoral to allow someone with a gambling addiction to play in your casino. In my opinion, any moral obligation goes away when the other side is taking advantage of your addiction.
Although I do think that this guy crossed a legal line, there's no doubt that the casino would love to have him right up against that line as hard as possible.