Because that 6 million you receive was meant for the investors and not the option recipients. SHFL is somewhat responsible in at least keeping shares outstanding down. But, that is no excuse for option plans. They could have used your 6 million for more buybacks.
However, IMHO it is ethically wrong for the executives to give away or distribute shares for free. The whole purpose of a stock is to represent ownership of a company. Who does it hurt the investors and the employees.
How can employees be hurt if they are part of employee option plans. Because employees wages are fixed costs, if any of them buy stock, they will slowly chip away at ownership of SHFL.
To prevent this option plans are created to give management complete control of the company shares and thus ownership.