I'm from the states and have been using a betting website to do some light sports betting. They do not allow US citizens and so I used a VPN to gain access. They only require an email address to create an account, and no KYC unless you want to buy crypto directly from them. I will not name the site for various reasons.
I hate KYC but this is your own fault. Why did you play on that casino if they clearly stated that they don't want you as a customer? You knew the risks, you still wanted to play and now you lost your money. If the money is not going to harm you in anyway, $1200 is a nice amount for a lesson like that. Now you know why you should care about the rules and if you don't, there will be consequences.
We should know the risk of using VPN, it's only acceptable if you use it for privacy but if you are using it to bypass some restriction, then you have to pay the price and you have no right to complain as in the first place you know yourself have violated the TOS.