Yep. Greece did pretty much this (in much the same clumsy-legalese) way a decade ago.
http://www.geek.com/games/greece-bans-gaming-550776/
I was working there at the time. To be fair, many of the “internet cafes” targeted really were in fact underground gambling dives, it’s just the wording of the law was screwed up to be over-inclusive.
