And as Vod has commented, KYC protocols for sites do allow the governments some more influence in those fields.

That's pretty much it--governments all over the world regulate physical casinos and collect taxes and so forth, so is it really a surprise to anyone that online casinos have to know the identities of their players? Non-KYC casinos (and exchanges for that matter) might have been a reality in the early days of bitcoin, but it was never destined to last.
The only problem I have with crypto casinos or exchanges is when KYC is suddenly a requirement in order to withdraw funds, i.e., that requirement wasn't made known up front. I've seen complaints about that before and I think the KYC requirement definitely should be made loud and clear before a person is allowed to register on any of these sites.
An all-out boycott of those services done by the crypto users!
Do you know how funny this sounds in reality? All users boycotting services that require KYC?
It does sound pretty funny, and it isn't like it's going to change any business practices, since these places
have to know their customers in order to operate in whatever country they're in. The government is mandating the practice; it's not something any casino or exchange just chooses to do.