...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 think casinos are not regulated just to retain fiat payment methods or those users, but rather to prevent money laundering. Sometimes we see issues of money laundering even against regulated casinos, so at least the government may be regulating casinos as necessary to prevent money laundering.
Yes, it is possible to remain non-certified and non-regulated, but ask yourself how many uncertified casinos do you feel comfortable gambling at without any hesitation? This is why casinos are currently being regulated as necessary.