Yep. Taken to an extreme, shoplifting or strong arm robbery (aka pickpocketing, purse snatching, or minor assault and robbery) are vices too. Should those freedoms be allowed? Should drug and alcohol abusers be allowed to operate cars, aircraft, or machinery? Where do you draw the line on allowing a vice?
What about sex for money? Is there any public interest in not allowing that versus allowing it?
You see, CATO isn't measuring personal freedom but rather societal tolerance for vice and petty crime. Positive personal freedoms would be things like car ownership versus use of public transit, or home ownership without government imposing a property tax. Or, ability to open and operate a business without massive licensing and other government requirements to give a few examples.
But CATO doesn't measure that. They measure what negatives are allowed in society: Gambling, prostitution, drug and alcohol use, that sort of thing. Their measure says people should be allowed these negatives while saying nothing about positives they should be allowed.
Shoplifting is allowed in the Peoples Republic of California.
It isn't working out well.