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.
I believe you have also heard and read of some many allegations about online gambling sites. If you have not then you can read through the scam accusations threads below. They are all passing and experiencing different challenges depending on what comes out of the gambling.
https://bitcointalk.org/index.php?board=83.0
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.
What do you prefer in 2025?
Not true these days. Fiat gambling sites might have gone through such challenge of paying cash out and winnings to customers in the past because of the manual kind of system but now they have gone digital and with the numerous cashless policies, there are different micro finance banks and apps that have made instant cash payment for winnings and deposit for funding possible just as with cryptocurrency.
Microfinance institutions (MFIs) have added spice to fiat gambling because they can go into partnership with these banks and make even huge winning payment possible either through short or long time loan if the fiat gambling site choose to when and if they don't have enough cash by themselves. In fact, most fiat gambling sites have their accounts with banks from where they transact with customers. So I don't see such payment challenge from what I have seen so far in my country.
Therefore, the difference is quite limited if you are trying to compare cryptocurrency gambling sites and fiat. You can gamble from home using your app and maintaining your privacy both with cryptocurrency and fiat.