Exactly. KYC renders the whole idea of Cryptocurrency ineffective. Most people would rather use their national currencies than use cryptocurrency and still go through KYC.
Betting on physical casinos with physical currency is not even as invasive as cryptocurrency with KYC.
I guess you should use decentralized gambling platforms...they are mostly KYC free.
Just look at this from other side. If gambling platform requires KYC at least in some cases and operates normally, means that enough customers are not afraid to pass verification. Others can chose decentralized platforms