His point is that the government not only doesn't ban many forms of stupid decisions, but actively encourages ones that provide significant revenue, particularly in the gambling and consumer spending spheres.
"Tu quoque" is actually a pretty useful heuristic for analyzing whether a party's stated goals for a policy align with its actual ones.
Personally I belong to the side where I'm willing to give up some personal freedoms for a better collective life, that includes saving very stupid people from very stupid decisions that might affect the rest of their lives (and their families').