As I mentioned in another reply, the particular clause referenced above is not what was used. However, your interpretation that the game was "invalidated" is correct.
This is not exploitable because it is within the casinos power to not use marked cards. Further, if the casino did use marked cards, and the player won; then the casino could invoke the same law and invalidate the winning.
This is essentially what happened in Golden Nugget v. Gemaco (the main precedent cited in this case); where the casino lost big as a result of using non-shuffled decks. Despite the fact that this was clearly the casino's fault, the court ruled that (regardless of fault) because the game was no longer authorized under the Casino Control Act, it was illegal, and any contract based on it was void.