You can't expect the child to understand the rules immediately - particularly if he is not used to having any or having to follow any rules elsewhere in his life. What you can expect is that he will learn to adjust certain behaviors IF he wants to play at your house. You may need to add a little extra patience for this one, but you can make it worth his while by providing a structured environment that is real and safe for him. Don't give up on him yet - he sounds like a smart kid. Let him make the right decisions.