In the midst of increasingly aggressive casino competition, of course the government wants to be involved in incoming financial activities so that it enforces KYC rules when casinos apply for licenses so that they can operate more widely. But as is the case nowadays crypto casinos are increasingly being imposed by policy. So some gamblers avoid KYC as much as possible when they don't like it. But there is a waiver that casinos often provide, namely compliance with KYC only when needed for purposes such as large transactions or avoiding fraudulent actions. As a result, the government tries to provide an option that the licensed casinos will agree to.
That's what I am saying in my reply before that there are some casinos that won't require KYC when creating an account and only require KYC when you are suspicious and when withdrawing huge amount of funds. That's the kind of casino I gambled and to avoid KYC, I only gamble a small amount of money. I am glad that some casinos are like that compared to other casinos which you have to complete KYC right away when creating an account.