But the casino could also go bankrupt before it sees the house edge gains.
Nope, all casinos have betsize limit.
What you say would be true if say the house bankroll were 1000 BTC and then some whale with 10,000 BTC starts gambling there he could very easily win that 1000 BTC
However most casinos have a betsize limit like 5 BTC
So then you would have to bet 2000 BTC split into 5 BTC parts, which means that with a house edge of 1%, you would have to have 400 consecutive wins of 5 BTC bets to make the casino go bankrupt.
Well given the 1% house edge and double or nothing type bets with 49.5% probability, the probability of 400 consecutive wins is:
0.00000000000000000000000000000000000000000000000000000000000000000000000000000 0000000000000000000000000000000000000000000695151674800117 %
The universe will turn faster into cheese than a casino to go bankrupt
I`d worry about them getting hacked more.