Beyond the reasons mentioned in the Op I find a much important factor that keeps gamblers skip the KYC process is the fear of governments. Someday if governments request to submit the data of each and every user, our information gets revealed with the
amount wagered in total. Some foolish governments might also levy tax taking it as a proof of spending though most games lost.
Right! And with government's interference, there will be tax imposed upon the operator. The more tax is imposed, the more charges there will be on the players' transactions with the casino.
Exactly, not only that it can increase the charges or fees it also defeats the purpose of using crypto in gambling. Most people use crypto because it is hassle-free and at the same time a player can remain anonymous, thus, if a site has KYC players normally back-out because it can compromise their identity.
When the governments interfere, the tax will be applied in the gambling industry, and like above me said, and there will be more fee that will apply too. That will make gamblers search another gambling places that will not use KYC so they can play without verifying their account using their document. Yes, that is too risky to use our document because no one can always protect the real data of the customer and besides that, we are heard and knows that the document was sold in the dark market.