I think crypto gambling business has a great growth potential, but it's still a niche business.
The classic lotteries will still hold strong at the market and won't be impacted by crypto gambling too much in near future.
As for the long run - who knows...
I agree with you, in my opinion crypto and traditional gambling has their own potential, crypto gambling is popular with educated people and familiar with technological developments.
while traditional gambling is favored by people who do not know the world of technology, but make no mistake, currently traditional gambling like lottery is also very different from before, since the existence of the internet, traditional gambling can be accessed online.
This has proven to make it easier for gamblers to gamble without having to go to lottery place, and this makes the possibility of fraud less likely.