there are way more things to lose than to win with heavier regulations
regulations would not be a problem, they would be a solution, there are many scam cases where people don't know where to complain and with the recent case of the exchange going bankrupt people have already started to be unsure about whether their funds on exchanges and casinos will be there. safe or not, in the case of casinos it will be necessary for governments to be more active in casino inspections to certify that people's documents will not be sold, in addition to the fact that there are cases in which gambling addicts close accounts and return to play and the casino discovers that he is creating multiple accounts, but there are no clear laws the casino cannot report these people to the authorities to deal with him better, so at the end of the day the regulations are to improve this market, they will benefit the casinos and the people
the more a country create bureaucracy over the crypto markets, the more the crypto companies will move to simpler jurisdictions to deal with
those casinos that are fleeing to countries with less bureaucracy then they want to scam people, because if they want to run an honest business then they just need to comply with the laws, the same way they ask for KYC and always say they are complying with the laws. governments need to regulate this market, it is not possible to protect people without having laws. how are the dispute casinos between the client and the casino? Who is the mediator of this conflict? there is still no one, the person is deceived and stolen and has nothing to complain about, so this is not fair!
even in your example casinos would be obligated to spend more with lawyers and bureaucrats in general, and would be obligated to convert part of their crypto earnings to fiat.
casinos are not going to spend more money on lawyers, they just need to comply with the laws and not steal from customers, that's all. I don't see how any casino would spend money on lawyers when they are complying with the law and not stealing from customers, nowadays people are concerned about how casinos are doing in relation to finances, do casinos have the money to pay everyone the clients? the answer to this question is something people won't get unless this is a regulated market and casinos constantly have to show how much money they have