It will be good for the members if they do not have to fills KYC, although they are on the limit by your rule. I am sure they will not try to break the rule because they can make their account banned or blocked. The member non-KYC will play as usual like in the other gambling site and obey the rule.
I already register on your site and see what is inside. I see the minimal deposit is about 0.0002 btc so I think that will be enough for the member to check the site.
Maybe you are right or you are wrong, if the business has to comply somehow to regulations then KYC is inevitable but if they force it even though it's not really needed then they are wrong but given how online gambling is getting regulated, I think KYC is the best course of action. Their minimum deposit is pretty good, I might check it out later.
If the government forces them to apply KYC for their members, the casino can not do anything except follow what the government wants. They will explain to their members that KYC is now part of their casino and asks them to fill the KYC. The casino will transparent to their member and will try to hide something and after the member fills the KYC, they can give some bonus or other things to make them happy.
But if the casino can choose between applying KYC and not applying, the casino can select both choices for their members. That will also give an option for their members to complete the KYC.