Lol, why are all of these sites crumbling? Safedice, betking, kingdice? Probably others I'm not aware of. I'm sensing a pattern here.
It is because the market is over saturated with online casinos. Everyday another new online casino appears and tries to gather customers (actually steals from other casinos) by doing promotions. For every new casino manages to expand its customer base, some older casino has to die.
There is a lot of truth in that but I don't believe it has to be that way. There is a massive market using traditional fiat online gambling that hasn't even heard about crypto gambling. That's where sites should be aiming at stealing new customers from. It has so many advantages like provably fair and not getting your credit card blocked because you used it to have a bet with that most people outside of this small community haven't heard about.
I think Quin is more correct on the assertions. Also just because a casino wants to shut down doesn't mean it has to scam everyone on the way out. Fairly ridiculous behavior overall.
But, yeah, I think the growth for crypto gambling is there since there's a huge market segment that can migrate to crypto for the better house edge, superior experiences (when they aren't scamming everyone), easier deposits/withdrawals, easier regulatory frameworks based on countries and the like.
It's a use case for crypto that is simply far superior to fiat unlike many forced implementations, for example, overstock, where the net user benefit there is quite small.