If we used crypto, we could hide our money from the government. We can hold the money in the crypto form, and we don't convert that coins, or if we want to convert the coin, we can use the exchanges as the store of the money. Or we can use a wallet which supports to store the stable coins.
Yes, we can use the exchanges that don't require KYC so we can hide our money from the government

Gambling must be done using the cryptocurrency because this is the best way of making your actions anonymous. In this way even if a person is involved in some kind of illegal activity then that is not notified to the legal authorities. Crypto currency has no static identity and is not controlled by the government so it is easy to be used as compared to the fiat.