Similar to what I have said in another thread, there might also be an increase in moneylaundering through gambling sites and maybe also exchanges. There would be no reason why Cloudbet or any other gambling site would try to force their users to do a complete and exhaustive verification process unless it was very needed. It would also be very disadvantageous for Cloudbet if they were caught to have a moneylaundering ring in operation in the site. They could lose their business license.
Indeed, KYC and AML that have been enforced on centralized exchanges and crypto casinos have the aim of preventing illegal things like money laundering. But people are starting to think that this implementation is clearly detrimental to the privacy of other gamblers who actually just want to gamble anonymously.
Luckily gamblers have options on how they can bet anonymously at crypto casinos. They can gamble at casinos that do not require KYC, but may still have to go through KYC if the casino at any time suspects the behavior of the gambler.