This model does not resemble a free economy at all. Not only it doesn't consider the wealth-creation aspect of a free economy, but it assumes people "wagers" their wealth. No society does this and is a terrible model of how an economy works. Most people earn their wages, if they have some money left they may save that, but long term saving is not comparable with a bet on a coin flip, if you think it is, then you should not save at all because you will go broke with probability one. Again, that is not what happens in our societies.
Jumping to the conclusion that "taxing the rich" could solve anything is completely wrong. You would just make things more expensive and add extra incentives to take jobs abroad. It doesn't matter that the model is too simplistic, the problem is that this model is too far from reality.