This seems like it'd be mostly used in private games, of which I'm sure there are a huge number. Many of those are probably also going to be pretty high stakes,

This seems like it'd be mostly used in private games, of which I'm sure there are a huge number. Many of those are probably also going to be pretty high stakes, and if someone loses a bunch they may not be inclined to go to authorities and claim cheating - if said authorities would do anything anyways. ("Awww, you lost your money in an off the books backroom private game? Perhaps next time you'd like to try one of our fine professionally run casinos."). I suspect that most casinos are set up with surveillance designed to catch point source IR LED illumination these days.