As we know that most gambling sites will require you to gamble and wager your whole balance once, before you can cash out or withdraw from the gambling site and they take this measure so people do not do money laundering whereby deposit and withdraw without gambling.
Now the point here is that on the gambling site, there are many easy winning bets with odds like 1.01x etc. If the money lauder is sensible he can easily be wagering the whole amount by placing a few bets where the odds are very low and the winning chances are 99%.
So does this mean that there is a loophole here and the money launderers can easily by pass this wagering requirement?
Would launderers really do that? Risking money for 1.01 odds, although there's a high chance of winning, that is not the right way to do it due to the high risk involved. Detecting money launderers is hard in crypto, so I don't see the sense of betting on 1.01 odds just to mix or launder the funds. Besides, it's crypto; what they will withdraw is crypto as well. It would only be determined once it's cashed out to fiat, at which point the gambling sites are no longer involved, and the exchanges come into play.
There's a reason why some gambling sites still promote anonymous gambling while no exchanges do the same—exchanges are more regulated compared to gambling sites.