What do casinos do with inactive accounts?
Nothing

And what does inactivity mean - not logging in to your casino account or logging in say every two months without playing any game?
eitherways, you're still recorded on thier monthly active maintenance list as an inactive account... Being active doesn't count as a whole.
I also learned that there is something called a dormancy fee or maintenance charges on those inactive accounts which covers for administrative cost incurred by those accounts. I learned that the deduction is from the remaining balance in the account.
Do you not know that every casino has their TOS? and in that, are enacted rules; own of which is an account's withdrawal limits?.. just like they all have their win limits.
On the other hand, what type of fee is charged on an active account?
I learned that most casinos charged - not even small - but high transaction fees!