Casinos are now quite strict and if the funds flow from illegal activities then they will suspend it, I know casinos don't want their business destroyed just because of this, that's why money laundering is prohibited.
The government can legally confiscate casinos involved in this because it can allow illegal activities, I think casinos are open businesses so they don't want to be tainted with bad things like other illegal activities.
Crypto casinos now have many protocols almost like those of a FIAT money bank, and that is not something that is entirely good, this against the money launderer and the ill-gotten money, that is a fact, but crypto casinos should always be anonymous, the casinos should only care that the players have money to spend there, I know that the regulations make them do that to make it appear to the governments that they are doing everything right, but the criminals who launder money through the casinos are very new, the money launderer or sometimes the governments themselves do it.