There is nothing wrong with crypto-backed gambling sites, besides, even the crypto-backed gambling sites are regulated, at least the reputable ones are, take Stake as an example. It is one of the most famous online gambling platforms, and it has got strategic partnerships and stuff from everywhere, football/soccer is the most famous sport in the world and Stake has made it into that industry, isn't that enough to gain the trust of the world?

If one wants to stay safe from scams, they need to make sure that they are using old and reputable platforms instead of using newly launched platforms which might become scams later on. So, it's better to be on the safer side and do your research beforehand instead of blaming the whole industry later on.