I once came across an article where it was stated that over 60 percent of most crypto transaction were used for betting. I don't see anything wrong with that. But don't you think it portrays crypto in a bad way?
in my opinion it is a natural thing, even fiat is also used to bet. nothing wrong here, online gamblers will feel even more comfortable if their transactions use crypto money. I don't think it's a big problem, the big problem is actually the use of crypto in the real world and being a product that can really be used.
There is nothing wrong to use the digital money for betting, the source of funds can be asked by the exchanges if the gambler sends the crypto from the gambling sites. It is a commonly known excuse by the well-known exchanges but taking a screenshot from the withdraw page of the gambling site will solve this problem. Online gambling is widely used by crypto holders and as a working product, some gambling projects use specific altcoins for transactions.
calling betting a problem and calling betting with digital currencies a problem are totally two different things. Using crypto currencies in in gambling is cool and personal preference too. So if someone wants to play, he can otherwise no one really pushes anyone. Exchanges do not really care about your source of funds or at least I have never heard of such stuff. They are more concerned with number of customers and the amounts they hold.