What people/gamblers can do is to minimize the damage, and only play or give your personal info to those known long-running reputed website.
I agree if there's no choice after all.
Gamblers should be ready to comply with KYC especially if big winnings are experienced in the progress. We have no choice after all if that's the requirement before we can claim big winnings since we want that money. But for small winnings or something below $5,000 for example, KYC shouldn't be trigger here. Only for alarming, unusual, or something like that.
That's a huge amount, I would not let go of it by not complying with the KYC, of course, I would not hesitate to comply with the requirement and claim that money. We gamble to win, and winning big money is an ultimate success, so why not just comply and claim it, unless you are hiding something that you are afraid to give you identity to the site.