Crypto Betting Platforms basically fall under two categories :
1. Centralized Crypto Betting - like Stake.com, BC.Game etc. globalize betting but pose risk in withdrawals and control of funds by the user.
2. Decentralized Crypto Betting - like Polymarket, DexWin etc. both globalize betting and let users control their funds with smart contract regulated operations.
FIAT Betting platforms have long struggled with large dependency on payment solutions, trading solutions etc - which just makes the business expensive to expand - destroying the market for multiple sports betting tech organizations who have monopolized the industry.
Fiat betting platform is still alive as far as I know, although they might be challenge by crypto base specially along the pandemic era as there are a lot of gambling platforms that thrived that time and still up to this day are still up and competing for the top spot. As for t he risk that you have said on crypto based, I'm not sure about it. If you withdraw and you are not cheating on that casinos, then withdrawal are instant. Which means that they are going process your withdrawal without questions. Problem already arises if crypto casinos flag your account for like cheating or taking advantage of their bonus and giveway. But both market is a billion dollar business, as it is global and we can say that a gambler is going to be born every minute and going to play on land base casinos, fiat base online, or crypto casinos.