...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).
What I wanted to say has been said already, which are fraud like money laundering, scams, hack and many others fraudulent activities. Normally casino needs to be regulated to control it's financial security system aspect to avoid money laundering,scam and hacks. Without this regulation, a lot of Casino app would have been compromised. So there is surely need for that regulation for proper security management and the safety of customers.