the decentralization of the crypto world versus the centralization of what governments require clash and that causes all this chaos. When you are an unregulated casino that only has like a curacao license or maybe not even a license, you are at risk of both doing something illegal and also not getting any trust from any gambler in that position as well. Whereas if you do get a license and register as a casino and pay your taxes from it, then it means you have to ask KYC eventually as well.
So casinos do not really know what to do, some do require KYC and some don't and some only require it in certain cases and so forth but there is really no right answer. The correct answer for many is "do KYC and apply with law no matter what gamblers say" because that way at least you are doing something legit but that will come with some bad taste.
There was a point back before 2017 hype was created where the crypto world was all about "fuck the system" type of people, it was filled with those people and that was the reason why I joined crypto world as well because I hated banking and I hated the government of my nation and I wanted to come here and change something.
Over the course of years more and more regulations came, it was received great because we were no longer doing something illegal, it wasn't technically illegal before but it wasn't legal neither, it wasn't a law and it was uncertain what we were doing, so making it legal and regulated became popular here and many new people joined because of that which increased the price, first it was 20k in 2017 and now we peaked at 64k this year. However during that road we forgot that "fuck the system" ways and now people are seeing these KYC stuff as something that should be followed.
This is a delicate issue, because on the one hand there is the legal basis of the casino and if the casino wants to grow it must comply with the regulations, the licenses give much more freedom for the casino to grow more, but the only restriction is that it falls within the theme of "KYC" And already that way many players leave, and it is understandable, nobody likes to leave their data, if the basis is all so that they can play with more freedom, and for that cryptocurrencies were also created.
The downside is that many see it as an obligation to comply with the KYC, but there will come a time when there will be no casinos that do not require KYC, and those that do not ask will not have the trust of authentic and reputable sites.