People who are doing illegal things will not be bothered by the fact that some casino is asking KYC, its really not their biggest problem. There are a ton of them who doesn't and if they want to straight up gamble or use it to launder their money, they totally could do that without the KYC part of roobet and wouldn't be sad about it. However regular people who are bothered by it will be subjected to it as well and thats the type of people that they bother with KYC, because regular people who have absolutely nothing to do with laundering will have to do it. I do not see how that is fair when you look at all those casinos without KYC requirement at all.
If players have objections to KYC can look for other casinos that don't implement it at all but will probably face a lot of things that are also unpleasant for the player, yes it does seem unfair that normal/good players should face the same thing as players who may have bad intentions but that's the rules will be applied evenly.