...Is it fiat payment methods? Is it that casinos holding users money? — these two are top of my head, you tell me more.
So, why not remove whatever those things are that makes casinos necessary to be regulated? Meaning — stick to crypto deposits, don't hold users funds (i.e, become non-custodial).
Does that get rid of casinos requiring to be regulated am I being ignorant about scheme of things?
I don't consider any single thing as being the reason why regulators disturb casino owners to come and register their casino and be licensed, but as long as they are providing service to citizens, they should just be licensed. If they don't want to be regulated, the best thing is to leave the country and stop offering service to them because as long as you are making money from them, they need to know how their citizens are spending money and how they are also making it. They just want to control the lives of their citizens, that's all.