I understand that going through the gambling process and then fulfilling the wagering requirements can be a headache in itself but then what are the other ways of whiting the black money without any stress? I guess the other ways are even more difficult because exchanges have a lot more strict KYC policies and they would not let you withdraw if they saw anything suspicious about your account.
You are right mate, most money launderers like corrupt politicians and drug Barron's won't consider casinos as a good and reliable way to mix their money, and as a matter of fact, they are open to better options that, since with casinos, they risk losing part or all the money in trying to meet some of the compliance such as wagering which has been mentioned severally in this thread.
So for that, we have to start categorically with that wagering requirement as an AML requirement I favour the casino more because in most cases those gamblers that try to meet that requirements end up spending extra money through they losing in trying to meet the wagering requirement and by that, the casino gain more.
So a leader will rather pay a small fee to have his coins mixed using a Bitcoin mixer instead of the high risk of gambling in a casino which has a lot of conditions that could hardly be met.
Well, cases of money laundering nowadays have completely vanished from cryptocurrency casinos after they've announced KYC and AML rules and also added wagering requirements so that a user can't just make a deposit, play a few games and then withdraw the funds right after that. Now with wagering requirements, a gambler needs to meet a wagering requirement of at least 1x of the deposit which isn't easy to achieve knowing you might lose a big chunk of it.
Back in the days when cryptocurrency casinos were newly launched and when there wasn't any KYC verification or very high wagering requirements, money launderers used to use that opportunity and that is the reason why KYC and AML rules were then imposed on all cryptocurrency casinos operating under a license.