How lost are we? Does it also look so hopeless in your countries? Is there any way out of this situation?
My country's government is shit, poverty has been increasing in my country for years and I don't like the politicians and the government of my country, but at least they are in favor of gambling. They don't create barriers, on the contrary, they encourage casinos to come and operate here in my country and there are many casinos and betting houses that operate here in my country and fortunately we don't have any problems. My country's laws on gambling are very good. Of course, all people are required to do KYC to avoid cases of minors getting involved in gambling.
Same here, I won't give a thumbs up for the politicians in my country but where it concerns gambling, whether it's crypto or physical there's no issues. Although we're hearing about new regulations on gambling sites but I know that it'll be mostly on taxations, but so far the government is gamble friendly and we're enjoying ourselves.
OP could've shared a link to give us a better insight about the information so we can have a better understanding of the gambling situation in Europe. I believe that crypto gambling can't go extinct in Europe, bookmakers will have to comply to regulations there to remain in business.