I don't think that crypto-gambling or online gambling will be legal in a country where traditional or physical gambling is illegal or banned, whether it's online or done with cryptocurrencies, it's gambling at the end of the day and if there is a prohibition against gambling, it is for all sorts and not just one.

However, as far as I know, even in countries where gambling is illegal and you can't see any physical gambling establishments there, you will often find mobile apps or websites providing gambling services to citizens and citizens also participate in them. I know that they operate illegally, without any license or permission from authorities, but they do this thing and I wonder what happens if they are caught doing that.