What is your take on this?
I don't think anyone really do. And as I'm not into money laundering or mixing I don't think any of it matters. I haven't ever used a VPN on gambling site.
And as I gamble with smaller amount, I have never faced any event for my funds being held by casino. I also don't remember filling a KYC on crypto based casino. Did it on bet365 and might not be unwilling to do that if I have to.
Whatever the terms maybe, there's practically no use of it as they can change it anytime. The best way to avoid the casinos you don't want to join is to go through their review.