I think that all crypto casinos will gradually switch to identity verification. All casinos that work with fiat money already work this way. If you are asked to submit a photo for KYC, draw a watermark on your image. This will help protect your data from fraudsters.
It’s impossible to put watermark on your KYC photo because KYC company wont accept it unless it clear and visible. I don’t understand too why having a watermark will make you protect your data while the picture of your ID is attached to the personal info that you submit to the casino which means all your info is already exposed once casino kyc system got breached.
I agree that casino will have no choice but to follow the regulations even with strict implementation of KYC if they want to make there business alive. Casino has a gambling license which means they are tied by the law.