The existence of incentives can encourage crime. Why would anyone throw a game if there wasn't an upside? Nobody does anything for "free", and by creating a market you are providing liquidity leading to more "labor". A market for whether or not someone will die within x date sets up a financial incentive to kill that person. That is encouragement.
Saying that people who enjoy sport/ gambling "don't have anything to do with people who want to cheat and steal to gain materially from it" is a false dichotomy. It's nature. Ask yourself, would you throw a game in your sport of choice in a hobby league for 100 million dollars or whatever? Why not, no one gets harmed, it is a lot of money, it's not even a proper league. This applies to all levels of real world consequences, some people have a larger apetite for risk.
Saying that people who enjoy sport/ gambling "don't have anything to do with people who want to cheat and steal to gain materially from it" is a false dichotomy. It's nature. Ask yourself, would you throw a game in your sport of choice in a hobby league for 100 million dollars or whatever? Why not, no one gets harmed, it is a lot of money, it's not even a proper league. This applies to all levels of real world consequences, some people have a larger apetite for risk.