How to deal with bitcoin/crypto volatility as an online casino?
Do players gamble in USD or in BTC?
If players gamble in BTC then it is not your problem to deal with. You just deal in BTC and take a cut of the BTC. If the player who wins BTC ends up losing USD, that's not your problem - just like if a player goes to a European casino and wins EUR but then loses money after converting to USD, it's not the casino's problem.
If players gamble in USD and use BTC only as a transfer mechanism, then you should have some sort of financial mechanism to hedge against price changes. For example, you could sell the BTC as soon as you get it, and buy more BTC when players withdraw.
I am not a lawyer and this is not legal advice.