Also, widely used hashing algorithms are not an "unknown algorithm". hashes are the core of bitcoin.
Yes and this is good so. But does not have much to do with the distribution of its random numbers.
"Provably Fairness for Dummies"
1. casino generates a random string, called the 'secret'. Use whatever random system you're using now.
2. hash("sha256", $secret). Show it to the player.
3. player provides their own secret, via txid, or normal input. Generate player's secret by collecting mouse movement. Let player specify their own secret.
4. output = hash("sha256", $casinoSecret . $playerSecret)
Of course you are underlining the advantages of "provably fairness" as you self advert for such a casino. But the problem lies in the $playerSecret. A hash calculated on the clients computer does not provide as much proof as you tell. It can be manipulated too. To exclude that you have to make statistics too what needs the same amount like every statistical proof else. As long as such a "provably fairness" isn't certified by a trusted 3rd party it's not so "provable" as it seems for an customer.
If the hash $playerSecret comes from a 3rd party like the bitcoin network it is a legit process to use this to make a gambling service provably fair. But as long as the $playersecret is generated by some shady javascript on the casino website the "provably fair" is not as proved as you say.
Yes we could implement a "provably fair" algorithm, but it only would suggest the user a security he can't have. So we decided that the user should decide on realistic parameter if he wants to trust us or not.
The user should always be aware to get cheated on the internet. And we don't want to lull our customers into a false sense of security with algorithms which only look good.