...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?
Regardless of that.
It's all about the revenue of these casinos that makes them regulated or should be regulated by the government.
They're not going to skip on that when they see that it's a profitable business and they'd always assume that casinos will always be taxable regardless of what people think about them.