I prefer no KYC with the exception of users that are questionable, reputation is what counts, but it's hard for a casino to do non-KYC if they are licensed and want to be compliant, they also need KYC for users who they think are violating their rules.
KYC now protects both players and casinos, but we are in a Cryptocurrency environment where players want to protect their sensitive information.
I should have explained it more when I started the topic, but to get more context I'm thinking about a casino that's built directly on top of Bitcoin or the Lightning Network, like DirectBet. No accounts, no registrations, just Bitcoin transactions. Plus to help preserve censorship-resistance, let's pretend the UI of the hypothetical casino was running on the TOR Network.