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.
If it is that way, it seems to me that it is something that is very good, in fact many people can use KYC as a way of not hiding what it is, however now it is that there are these types of demands in casinos, they seek to be as transparent as possible and despite the fact that it is something that people do not like, because most people do not like to give their data, it could be said that if the casino meets that requirement and that it has some seniority and if not it has negative reviews by the DT users of the forum it is something that is worth trusting, at least I see it that way, the KYC will always be an additional problem in crypto, because precisely the BTC was created so that people would not give their data or things like that, but in the case of casinos, the regulations and requirements are something else.
I agree with what you said. Bitcoin was created to be pseudonymous but I believe we already understand that change is always constant especially when it's an innovative setting if we don't want to lie to ourselves and I also believe we ought to foresee this happening in the cryptocurrency space if the ecosystem is getting more traffic or the institution is involved.