Can you mention what specific exchange that has ToS like this. I’m not aware that some exchange prohibit gambling funds since I frequently use exchange to deposit directly on my casino wallet for more than 8 years with same exchange which is Binance.
I knew that mixer is the one that being prohibit but not casino funds at least on my knowledge
Binance actually has a clause that prohibits gamba activities.
26. Prohibited use
f. use Binance Services to conduct or participate in lotteries; gambling activities; bidding fee auctions; sports forecasting or odds making; fantasy sports leagues with cash prizes; internet gaming; contests; sweepstakes; or games of chance, to the extent prohibited by Applicable Law;
From what I've seen it has been a hit or miss with gamblers. There are those who apparently was flagged and those who were fine. The latter actually includes me too lmao though I've never depo'd and withdrew directly. Essentially, I don't believe any exchange has a 100% accurate trigger system in place hence, the hit and miss.
Interestingly, my vague memory tells me there was a time binance had no such clause as well. I could be wrong though—emphasis on vague memory.