As for me, it would be better to register on a casino site that asks for KYC than to risk my funds on a casino site that doesn't ask for KYC but has a bad reputation. Reputable sites that ask for KYC will surely protect your identity so submitting a KYC as long as you have the requirements I think will never be a problem.
Do you think there are no reputable casinos where KYC is not required?
One of the most important and fundamental features of cryptocurrencies is anonymity. In my opinion, cryptocurrency casinos should not require KYC verification. Of course, if you prefer to undergo verification, please, you can do it anytime and anywhere, but in my opinion, if someone plays cryptocurrencies and does not want to undergo verification, should have such a choice.
Having a "no KYC" setup is highly dangerous because so much of a gambling operation relies on the services of companies in North America or Europe where a lot of web services reside. Almost every government in the world wants to know what gambling operators are up to if they accept customers from that country. If there is any chance a US resident could be gambling (even with using false info) their are financial regulators who will force you to disclose that info and if you don't they can apply pressure on external facilities that your site may use. They can go after servers, support systems, domains, DDOS defense systems or all sorts of third party software that could cripple you. It is much easier to gather this information than be at risk and have your clients money at risk every day.