I mean tell me if I am wrong, you said the only time you will ask KYC on the kingdice website is when people buy with credit card because the credit card companies require it to give you an account, that is understandable, but for everyone else who will buy bitcoin with different methods you may not need such a thing?
That means if you implement it to freebitcoin as it is without any other website, couldn't you just require KYC for credit card people and not ask for KYC from anyone else? Hell you could ask for KYC from everyone who buys bitcoin with fiat but as long as you don't ask KYC from people who doesn't use that part of the website, I doubt it would be a problem.
The reason for creating a new website is quite clear. They want new customers. They want a website which includes "dice" in its domain.
I guess kingdice will focus more on dice game and will have lower house edge, while freebitco focus more on faucet.