We require KYC for every withdrawal.
KYC in any gambling site is the worst thing. And you will not attract gamblers for this KYC. People always want to keep hide in the crypto world and when they do gambling. If KYC will ask only for the fiat withdrawal then it would be ok. But you are asking for both fiat and crypto. Personally I don't like this.
It is true that most of the gamblers always want to be hidden in their data so it will also be difficult if the new gambling platform they impose KYC for withdrawal, then this needs to be reconsidered to attract more gamblers because withdrawing from the results of gambling always wants to be fast.
There are also many big gambling platforms that don't have KYC because they know it's very anonymous.