Moreover this money lauderers know that the risk behind putting their money on gambling platforms and won't want to pass through the stress of these wagering requirements or kyc processes before withdrawal, they know chance of losing their stolen money is high and would seek other alternatives instead of going through those stressful processes
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.
It is a misconception that Bitcoin and cryptocurrency are a landscape where money laundering is widespread. In fact, I would dare to say most of laundering still occurs with FIAT instead of Bitcoin and other alternative coins.
Cash continues to be the number one option for criminals and physical casinos are more appealing to them, since they have less chances of getting busted and their money being seized.
Ironically, even though this ecosystem is about total control on one's money, it is more transparent than the old tradicional one.
Despite the truth that money laundering is far greater in fiat currency, the emergence of cryptocurrency and crypto casino gives these money launderer more options to launder money. We cannot deny the fact that cryptocurrency is being exploited to launder money and most of them pass through the crypto casino to wash the traces of the transaction.
Wagering though slightly help to keep away money some launderer but it does not really stop the culprit to use crypto casino to launder money.