They will not get arrested after a deposit. And won't also get noticed if making small withdrawals unless they are whales who are completely ignorant about what they are going through. Those users have limits to transfer from their e-wallets and know that they can use the same wallet to withdraw large amounts. If one of them is lucky enough to win a big sum of money in 1win, i think he will find the best way to withdraw it which is no way but via crypto. 1win offers those people the opportunity to enjoy a great gambling experiance, please don't spread Fud.
Crypto is currently the best way to make withdrawals and deposits compared to using fiat. However, as mentioned, not everyone is aware of the existence of crypto or still doesn't use it for their gambling activities.
I personally prefer to play and use cryptocurrency, although I occasionally use fiat, but I don't deposit, but it's always converted to cryptocurrency. And I personally feel more comfortable using crypto than fiat.