Never happened. Some kick starters didn't deliver, but you're factually wrong-- these laws have existed for decades before Kickstarter started-- and you ignore my point. You can lose your life savings in a weekend in Las Vegas and nobody bats an eye.

It certainly did happen, there was a spate of kickstarter projects that turned out to be vapourware. The rules were changed after a while.

There are regulations for casinos as well.