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.
The casino that cares about its members will not try to ask KYC for them as the casino respects their identity. It is okay if the casino applies KYC for a gambler who wants to withdraw big money from winning because the casino wants to know who their customer is. But we need to be careful if we want to do KYC and only select the casino with good reputations to protect their members.