Back in the day we were just using the major coins like Bitcoin and some altcoins - no stablecoins yet. We gambled with the price volatility too, but we liked it because it was non-regulated and gave us full freedom in gambling.
Now crypto casinos are very regulated already, meaning we have to comply with KYC. And if we’re using stablecoins like USDT, USDC, BUSD, etc., then it’s really no different from fiat casinos since both the payment method and the casino itself are regulated.
The downside is, does blockchain now just feel like a wrapper? If I’m using USDT, it feels no different from betting with dollars on a centralized e-wallet, aside from slightly cheaper transfers.
So that’s my question, are they killing the crypto edge we enjoyed before?
Many of these gamblers are still using Bitcoin to gamble, using Bitcoin and other crypto currency to gamble is a choice. You can chose to use a stable coin to gamble and you can still chose to use Bitcoin or any altcoin to gamble as well because all of them are still categorized as crypt currency. The difference is that some are more stable than the others. But in as much as they are called crypto currency those you called stable coin are not that stable.
Stablecoins are also cryptocurrencies and can be used in both casinos that mandate KYC and those that does not. You should not make it look like stablecoins pro KYC while the others are not because there is no connection between stablecoins and regulation of casinos since they are just like every other means of deposit/withdrawal. Now that I have made this clarification, the answer to your question is a no. Even casino that allow deposits via Bitcoin, they can decide to make KYC compulsory or optional. It is up to the casino to decide how they want to run their business.
This is also my point. They are both crypto currency so any casino that is not yet regulated can also use them for business. People choses crypto casinos because of the fast payments and privacies.