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Is it possible to dual boot windows with the new m1 chips?

You can most definitely use the latest Parallels IIRC, why dual boot?

Mostly for gaming. I use bootcamp now to play MTG Arena and StarCraft 2 on windows which seems to have much better perf.

I imagine gaming doesnt work well in parallels?

I don't think I'd make that assumption. https://www.applegamingwiki.com/wiki/M1_compatible_games_mas... , for instance, has a number of games that do pretty well in Parallels.

You can play SC2 via rosetta. Unfortunately not optimised for M1

No.