I think that when there is a person who has a criminal record, they should not pay so much attention to it, because it does not have much to do with online casinos, I think that all online casinos are interested in them playing on their platforms, putting in money and being able to do good management within them, I think that the other thing is the personal life of each one, and I do not think that a casino cares much about that. I know that the origin of funds is important but when it comes to FIAT money and those that most influence that's what banks are for, in crypto they skip all these things, giving the origin of funds in crypto, BTC, ETH or another I think would not make sense.
That is why some of the users always look for those casinos that provide privacy security and anonymity.
I have once done some research about the major reason why KYC was introduced in the casino and the answer is to protect the company from getting in trouble with the law since some people use them as a way to tint their stolen or illicit crypto so I believe casinos are not after users criminal but they are after keeping their record clean with the law.
I think it is very important to have kyc in the casino. If you have kyc say for all no cheater can do any kind of crime. If we do kyc then our account will be safe. If a person commits a crime, if he has done kyc then they will be able to identify him very quickly. It seems that there are many opportunities. No person can commit any crime here.