this is a somewhat delicate issue, I personally don't have any problems with giving KYC either, it's something that seems common to me, because in almost everything the KYC is required a lot, even in the Exchanges they demand it, I don't know if I said it here, but a long time ago I had to withdraw funds from Binance and I was surprised that they asked me for an additional KYC, like to verify that the one that was requesting the KYC, then for an exchange that is level 1A that requires KYC from the principle for its verification, sometimes it is understandable that a casino asks for it because it is money that is being handled and in most cases it is usually enough, everything is to have greater security.
The exchange bit changed the whole approach to it but I disagree with it a lot. In 90%+ of the nations that I am aware of, trading bitcoin is not an illegal thing, but 90%+ of the nations I know makes gambling an illegal thing. I am not entirely sure why, because if "addiction" is the only reason, we literally have nations with drugs that are legalized and gambling allowed.
My nation for example have terrible things going on, hell cigarettes and drinking booze kills you, and yet people banned gambling some 30+ years ago for some reason. But, that's the law. Meaning my government can know about me trading on an exchange, but not really need to know me gambling.