But hopefully since you don't have to produce a photo ID when you walk into a physical casino in Las Vegas or anywhere else (in the US at least), regulation by governments won't go that far.
I live in the USA and I have to give my ID everytime I enter the casino. I don't know if that's a mandatory thing all over the USA, but where I live it is mandatory. They don't take your ID to tax you on the gambling but to verify your age and possibly check for warrants. You are the 1 responsible for any taxes on your gambling.
Same here in my country physical casino. All casino here is requiring all the players that entering the premises of the casino to provide valid ID before they can enter and play in the casino. This is due to the new regulations for gambling industry. Actually some casino also ask players for show money with specific minimum amount to make sure that they are really playing inside.
I know that this KYC in crypto is really a pain in the ass especially if you are an old time player in the casino but there ToS clearly states this possibility since the beginning so its really hard to make a case here if there’s a ToS that supporting there action that users agreed upon registration.
The only inconvenience and I really understand on this kind of case was if it happened that you have a balance on the casino by the time this random KYC hits the account.