When the kyc was compulsory for the players playing in casino then,it leads to the reduction in the players.This is because of the players mindset towards casino.When the casino was operated outside the environment.Most of the players will not engaged in this kyc.Other people will try to get some cash back at least for their benefit of the deposit to the game of casino.
When a person has been playing in a casino for a long time and has not passed any KYC, then the sudden requirement to reveal his identity will, of course, be extremely unpleasant for him. And by the way, quite a lot of people will leave this casino and start playing in another, where kyc is not required.
Therefore, by introducing kyc, the casino always runs the risk of losing some of its customers. But the player can understand. Many will prefer anonymity when gambling. There are quite a few reasons for this.
And by the way, I do not think that the casino is used as a mixer for laundering dirty cryptocurrencies on a massive and large scale. Of course, individual cases are possible, but large sums cannot be laundered in this way.