If I had zero problems with providing my KYC, I would have stuck with FIAT gambling sites instead.
No, obviously for us players it is not feasible to always have to do KYC in order to have all the relevant benefits, I mean from the point of view of the platform, they are required to have clarity in all plays and deposits and Withdrawals, if a casino handles a considerable volume of crypto, this transforms to FIAT and it is a lot of money, I think that is where they want to cover their backs so that they do not get sanctioned or get into trouble, possible lawsuits among others.
I see this from a point of view where I understand the casinos that for the most part do not want to require KYC, but if they do not comply with the regulations they can be in danger of even closing or having to go to court, a money laundering accusation or another thing is not pleasant.
the basic idea of crypto is that there is no attachment to central power, which decides everything in a community is a member of the community itself. Of course this is still a problem today, and KYC is not really a pleasant solution for some people. Especially gambling players.