As much as you see it a certain way, you have to start realizing that communities, both offline and online, have certain members who are designated specific roles within the community while still retaining their membership. However, their powers remain limited compared to moderators and community managers who are employed by stake and specifically sourced for a role in an office setting.
Maybe a good suggestion would be to have a different badge for player moderators so that other players can distinguish them and not perceive them as players with "perks." Additionally, player moderators don't necessarily work in strict shifts, they're both playing and moderating.
Also, the said moderator you're talking about reached diamond lvl after about 7 to 8 yrs of being here. While it's easy to assume they might be benefiting from their role as a moderator, I doubt their powers extend beyond basic chat moderation.
Just this past week, I witnessed @Zoltan speaking about his losing streak.
You can't really compare this to a real-life casino because it’s not one. It’s like saying there’s a club with a member who's the head but still swimming in the pool. But that example doesn’t work either, because it’s not really the same as an online setting. In the real world, roles are usually more defined, and authority is clearer because people are physically there. But online communities are way more flexible. People can do multiple things at once, moderating, playing, interacting and still be part of the community. The lines between moderating and just participating are much blurrier, so trying to compare it to real-world examples like clubs or casinos doesn’t really fit.
Whilst community moderators go through promotions, as far as i know, player mods have had the same roles since day 1 and that hasn't changed.
I hope that explains!