I think livecasino.io managers also say they have funds in escrow and they personally hold them, like Royse777. So I think suchmoon is right.
The difference in their case is that they don't have money problems (at least that we know of) and both of them have to agree to move the funds.
Do we know for a fact that Royse777 has money problems severe enough that he'd be tempted to steal $2000?
Here is the problem, or at least how I see it. Royse777 seems to be trying to rebuild his reputation. Whether that's a good thing or a bad thing is a whole other discussion (I personally am a big fan of second chances but not so much of 3rd/4th/etc chances). The point is, he's doing it. By engaging in an activity that he's good at as far as I know. It'd be more worrying if he tried to e.g. buy/sell small trinkets to farm trust or some shit like that. However the only real way to prove trustworthiness is to show that you don't scam when you have a chance to do so. If you use escrow or go first in a transaction you can't prove that you're trustworthy (and positive trust ratings in such situations are worse than worthless IMO). So the reality for Royse777 is that he must ask for other users to risk their money - in this case campaign earnings - and show that he is paying it out, if he wants to rebuild trust in the community.
This is not an endorsement. For all I know he could do just fine with $2000 but build up to a larger exit scam later. Just saying that this escrow set up alone is not an indication of anything nefarious.