...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?
In order to properly use a casino and gamble we all required to use a wager with a monetary value, it could be fiat or it could be crypto. The problem it not the First, the problem is gambling can be used to clean money coming from illegal activities and then re-circulate such money again into the economy, plain and simple money laundering.
That is one of the main reason casinos are regulated, another reason for them to be regulated is to keep children and teens away from playing casino games or wager money on betting markets.
Besides regulation one also needs to take a look at the reputation of casinos we choose to deposit our money onto, though. I would personally not use a unregulated casino, but I have seen people willing to risk some money for the sake of using unregulated and pro-privacy casinos.
In the end, if those unregulated casinos get too big and capture much volume, they get closed down.