For me, it's okay to pay withdrawal fees if they are very low and near to real life cases, like, if the fee of average Bitcoin transaction is $0.50 and casino charges me that, I'm okay with that. If the Litecoin withdrawal fee is $0.01 and casino charges me $0.50, that's not okay for me. I prefer fair fees for every kind of cryptocurrency.
This is how Stake is. The fee are very cheap. It is one of the cheapest that I have seen among the crypto gambling sites that I have used. I like how it is because it is not disturbing nor frustrating at all.
Although not I see a gambling site that soe not charge at all and it is a reputed gambling site, I will prefer it also, but if the fee is low, I also prefer it. I go for the two. But what that is most important to me is their reputation.
I would love to know, which approach works better for casinos to increase their revenue and retain more customers? I feel like casinos that pay withdrawal fees out of their pocket have more loyal customers and their customers also deposit more money than those who don't pay user's withdrawal fees.
Both are good.
Both casinos will have loyal customers. You can go for the first one because most customers will be losing than winning and they will not be withdrawing most time.