thinking centralized services are more secure is a missconception, in my opinion, take the FTX case as an example
nobody tought it would fail, it was big, in the billions, with huge partnerships, backed by celebrities, with a stadium with the name of the exchange, and out of nowhere: gone. puf. zero. zilch. nada...
FTX won't fail if the management don't do illegal trades and does not intentionally drain the FTX fund to fund their other companies investment plans. Imagine moving
$8B of funds to its sister company Alameda, any centralized company will get bankrupt if majority of its fund is moved out to be used by other company.
As long as the centralized company is able, reputable and have good marketing, and offer an insurance of the deposited funds, it somehow minimize the loses of the client. Unlike losing a private key of your non-custodial wallet or being infected by balance draining malware, you will never get a refund since it is your own fault that you lose your funds.
Looking at the deep discussion about KYC and also the non-ending one, those who have issues with the KYC should either quit gambling or maybe they should go and play at l-a-s v-a-g-u-s.
No one will identify you but only few thousands peeps will be watching you play at the casino, or may be you getting nicely recorded on the CCTV footage of the casino. If you end up winning huge amounts of money then either someone is going to notice you now and then and end up with new friends!
I highly agree, we don't need to whine about KYC implementation, we are not forced to play in a casino platform, it is our own free will that we register on the site. Since the terms of service is already laid out, we need to follow it once we chooses to agree and register on the site. Else, no need to create any drama or issue about KYC, just avoid or quit playing if we have an issue about it.