I disagree. Most gamblers including me shifted from FIAT to crypto gambling primarily because of anonymous gambling without having to worry about government intrusion at any point of time. KYC effectively nullifies that.
Yes we can say that most of the people who shifted from physical gambling to crypto based gambling the majority of them wants to remain anonymous and these KYC norms affect them a lot and you can gamble without any worries but under AML policies they have to integrate these new rules.
Also, information leaking incidents happen more often than you think. They affected big companies like Facebook etc which is why I have no idea why you think they aren't common in the crypto gambling world.
Data leak is quite common like the database they are using for storing your information could be hacked or if they are using any third party software then it's more risk because they have chances of hacking more.