The "LIVE!" command only works when he's actually going to die. (ie: Lancelot blowing up sky high or a guy rushes at him with a knife or he wishes to kill himself).
What's going to happen is that he will still gamble to the extreme because he *KNOWS* he's going to live (and/or doesn't care) and it won't do much unless it's a situation where he's being slashed at by a sword or something. I don't think Washizu Mahjongg would be dangerous enough for him.