The thing is, people with ill intention of hiding their money and get away from their financial obligation to government use crypto platform to launder money. They use the guise of decentralization and influence others to make believe that it is the right of a citizen to evade taxes 
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How did you know this? Any value probable way or stat you read about this? With KYC, people still launders money, with banks people still launders money too..True, if we are worried about our information getting leaked, we must choose reputable casinos and comply to whatever requirements they need in order for us to use their services.
A reputable casinos or sites do not guarantee that tour KYC that your provided them will kit leak, do kit let us think like that. But you are not wrong too, a reputable casino will protect KYC than other ones. Some casinos can even be for scammers, we must be careful while choosing casino.