1. No KYC
2. Anonymous gambling.
3. Instant deposit and withdrawals.
I think these are pretty poor reasons to give and they are not unique to crypto. Any regulated business will be required to know where player funds are going in and out. If they are based in countries like the US, the UK or Europe they will be required to know the source of funds as this prevents money laundering. Once you start using sites that do not do these checks, you should be very wary about how they will treat their customers in future and are the sort of operation that could disappear overnight. Anonymity is covered by the last point but this usually works both ways, many online casinos do not share who owns them and this can substantially up the risk that they can take player funds with no oversight. Instant deposit and withdrawals - most developed countries are capable of doing this now and it will roll out to all countries in time. I can send funds and receive funds via visa card almost instantly already - probably faster than even the block chain.
Yes but I do think you are missing out the whole point. The cryptocurrencies are more trackable as compared to any fiat or cards. There are so many illegal businesses out there but you can very easily keep a track of your gambling business. You can ofcourse have the customers sign the legal doc, where their information can be used if they are under any investigation.
Cryptos are not anonymous!
They are literally the most transparent currencies if a person knows how to keep a track of everything. I do think that KYC is already mandatory for most of the wallets and at the same time linking your bank account and the wallet takes seconds.
It's not like people would hide something here. Also the gambling sites have stopped advising users to use the " IP address changed " things like tunnel bear and most people are banned instantly if they do something like this. This actually sends us a signal that the gambling companies are actually getting serious to prevent any problems.