IMO, a lot of the time when a bitcoin casino is asking a customer to go through KYC, the purpose is to get their identity so the casino can go to law enforcement about actual cheating, such as hacking, or knowing the 'secret' seed in advance.

SB should disclose why they were asking the OP for his KYC information. They should also clarify as to what basis they are saying that the OP "did not pass" KYC....