Gambling is and always will be popular. Online gambling just enables lazy people to do it from their couch. And especially with crypto, as many people just see it as virtual money, not grasping it's real value.
I've seen people waste over 1 BTC on gabling, and not feeling bad because "it's just virtual, it's not from my paycheck"
Online gambling makes people easy to gamble from every where they want. As long as they have Internet connection and money to start, they are ready to playing gambling.
This time, losing 1 Bitcoin will be more pain and makes someone can not sleep for some days. But I agree with you about crypto as a virtual money and not gasping it's real value.