People are rightly warned not to trade in OTC stocks if they don't know what they are doing, but I bet most people understand that warning to be about the companies likely being dodgy rather than about the market itself being rigged.
If the market mechanics mean it's essentially house-always-wins, you bet I'm paternalistic enough to advocate regulation against offering these casino chips to retail investors.
Why make a distinction between retail and individual investors? Either it's rigged, in which case it's almost certainly fraud, or it's not rigged and that means it's not exactly "house-always-wins". Like I said, making it so only certain people can participate in the market seems like the last step, not the first.
If the market mechanics mean it's essentially house-always-wins, you bet I'm paternalistic enough to advocate regulation against offering these casino chips to retail investors.