In fact, if this is the case, it certainly doesn't look good because we often label new casinos as scammers for the same reason.
If they don't have reserves here, how they will reward the gamblers when they win?
My theory was only that, a theory. I don't have any evidence that this is the case. But like you said, it has happened before many times, especially when BTC price would soar really high.
Hopefully, they have few thousand BTC stashed in a cold wallet