This is a twofold problem in some cases. For one, the informed gambler can easily avoid a DNS level block and play at his favorite casino without any consequences. The majority of gamblers will not even know how to overcome a DNS level block so they opt to play at licensed casinos. Arguably, bringing more enforcement against online casinos that don't pursue licenses would be very hard as they operate legally abroad, plus the online block gives them credence to operate with users not affected by blocks. Surely some users know how to overcome blocks but it's a very small minority.
But I think there's a type of regulation that governments could pursue which if implemented would affect everyone's gambling.
The way casinos run slot games these days is through licensing. The company making the games runs them in their own servers, and then the casino embeds a space in their online website. Many of the slots providers run somewhere out of Europe like for example Evolution Gaming, Fantasma Games and more being even listed companies in Sweden.
Imagine if regulators went after these companies and forced them to do everything in their power to stop serving any gambler accessing their licensed games through unlicensed casinos in their country of residence. It would make gambling very hard as casinos would then have a much more limited scope of games to run. Live blackjack and slots by evolution, its subsidiaries as well as any company domiciled in the same place, which are the most popular slots and live games providers, would be out of reach in most crypto casinos to most people. And given than Evolution and other popular providers are fully operating in EU, it would be very easy to target them with enforcement, just by changing a law.
Given the prevalence of online gambling and crypto casinos I think this might be a realistic development that could be coming. It makes me wonder what the future of gambling online with crypto will be then. Will casinos be forced to create their own slot and live games? And perhaps even bring workers abroad to run them without legal consequence? What do you think?
I don't think there is a reason why anyone would want to play in non reputable casinos in the first place,all reputable ones are licensed and there is no need to be blocking them through the DNS which anyone can change by putting the Google one of 4 eights or OpenDns servers which most ISP-s and government do not block.If someone wants to still play at those unlicensed or not regulated casinos he can do so by using a VPN or changing the DNS,even the uninformed gambler will try to find a way to reach that blocked casino and will soon with a simple google search how to access it again.