Until that 5% edge turns out to be a 7% edge (thanks to the bias) and the relevant regulators come down on you like a ton of bricks for cheating your players.

Any fixed predictability can only decrease the house edge. The players make the bets, not the house. Obviously if you could vary the predictability you could cheat people by selectively avoiding payouts for large bets, but that's separate.

Yes, from what I understand, the casino edge is required to be extremely precise. Returning too much money to gamblers is penalized just as harshly as returning too little.

This is why casinos like you to gamble more, regardless of what form, because their edge is fixed by regulators. Only by increasing volume can they increase returns.

When in operation the cost of the hardware and development returns in just a few days or weeks at most.

Edward Thorp and Claude Shannon would disagree:

https://www.engadget.com/2013/09/18/edward-thorp-father-of-w...

European roulette has a smaller house edge, and it doesn't take advanced statistics to find a highly imbalanced wheel.

I think it’s pretty important for gamblers that the game is fair so they don’t feel cheated when they lose.