In my perspective, it's perfectly fine and it's good for both users and the gambling sites. There are so many benefits when online casinos are strictly regulated. First, is that they can determine gamblers that are using laundered money with the help of KYC. You can also prove your wealth that it came from the gambling site if ever people or authorities around you get suspicious with the luxurious life you got from the huge jackpot. But these gambling sites better be sure that they have an active and authenticated license before I undergo their KYC procedures.