Gambling is an addiction, weather your using a fake currency or not.
When people gamble on Toribash, they are working up to a goal or a specific item. You can't compare gambling addictions in reality to wanting a lot of TC, that just isn't fair.
If some little kid starts to gamble and gets addicted, they will probably start gambling with real money and throwing that away aswell. Honestly, saying "it's at your own risk" isn't good enough for me, The fact of the matter is they could easily bypass that system and gamble.
Your point sounds like an extreme and unlikely circumstance. Little kids on Toribash already take part in bet servers and bet little TC aiming for a new force or a 3d item. Not once have I encountered one lose 500tc and then begin spam buying TC everytime they lost.
Also, staff themselves say when it comes to betting, it is completly at your own risk. I am not introducing anything new here, it's still a gamble and it's at your own risk. Buying TC to bet on bet servers is no different from buying TC to bet on a coin flip. Both involve risk and a chance for profit. And what do you mean 'bypass the system'? Real bet sites have much stricter rules otherwise they could face being sued.
Gambling can be a terrible addiction and Internet gambling is insanely hard to regulate. I really hope nothing like this ever gets implemented.
Again, I believe you are being too extreme, think about what Toribash is.