I think this is the right way. It is possible even rebuy short and strong brand name for new casino. Of course it means, that the site functionality is about excellent and you need just additional attraction of new gamblers.
No one wants to gamble on a site with many bugs, issues and problems as it could only delay their entertainment, fun or whatever reason they gamble. It's already automatic that the casino owners will have an event, promo or bonuses to their gamblers which the goal is to attract new gamblers. You will see that many newly launched casinos that turns out to be legit and trusted have set some bonuses or events to attract. It's business after all.
I will definitely leave a gambling site immediately if there are still many bugs on the site, require KYC level 2 for withdrawals and limit minimum withdrawals
I play gambling besides trying to make money but also playing for fun, how can I gamble for fun if I play on a
'problem' gambling site

No one like gamble, when there are lots of problems. And this is the first thing i look at. The second thing is usability. And only after that i look at other moments. One of them is brand name.
But i think that we all understand that casino, where you can get problems with fair play or withdrawal lose their gamblers and i don`t think that it ought to talk about it.
PS. KYC is just a service, i don`t think that this is about functionality or brand name.