Everyone wants to protect their privacy in everything they do, including gambling. Crypto allows us to do that, although some casinos may now require KYC, which can be uncomfortable for some.
It's perfectly natural to feel uneasy if our every activity is constantly monitored by the government or relevant agencies, especially if gambling is prohibited. So, we choose options that protect our privacy as much as possible, especially regarding transactions.
With centralized blockchains, nodes operate by big holders who are known by governments, it's unrealistic to think that with altcoin blockchains, you can have privacy and anonymity.
Only Bitcoin, and Monero can help you gaining privacy and anonymity but it is up to your practice with your coins, UTXOs, and how you connect to Internet when broadcasting your transactions.
Altcoins with smart contracts are very dangerous and for example, stable coins can be frozen in your non custodial wallets through smart contracts.
Most Stablecoins Can Be Frozen, Even in Your Own Wallets.With centralized platforms like online gambling sites, you have to consider between KYC and not KYC then make your decision on what is your main interest.