We have been in the crypto gambling space since 2018 we can clearly see that when the market goes down, the activity at the crypto casinos goes up.

Why do you think this is happening?
Those who are somehow prone to ludomania, at the moment when they lose certain material or virtual values, there is an acute desire to win back. Therefore, everything is logical, someone's assets in stocks/bonds or cryptocurrencies sagged, they start looking for options on how to get them back. And then comes the idea that you can do it with the help of gambling. And some people try to drown out their stress by gambling.
It could be a logical reason behind the phenomenon mentioned by OP, although I'm skeptical it could be happening in large scale, because it's unlikely a considerable portion of investors will have the idea of recovering losses from crypto investments through gambling, as it's a pretty dumb idea.
It's more like a desperate decision of chasing losses by some investors who didn't draw long term goals before starting their investments, while those who planned before investing will just wait the market to recover, without having to appeal to risky activities in order to make quick profit.