I believe it won't happen, the same way crypto casinos aren't going to replace fiat or land based casinos. What may happen is an increasement in the number of crypto sports gamblers when compared to fiat sports gamblers. And actually it's a natural movement, because crypto is becoming more popular day by day, also introducing new gamblers to the activity, especially young ones.
On the other hand, there will be always a public for fiat sports gambling, because not everyone is adept of crypto currency or trust it. So it's definitely not going to be replaced.

There are controversies about these benefits being useful on practice.
Just imagine a successful sports gambler making tons of profit through betting. Do you really think he could stay anonymous for too long?