I bet OP can't give one reputable casino that does not ask for KYC, reputation, and compliance go together, a casino cannot be reputable without compliance
By "compliance" do you mean being licensed? If yes then I have to disagree with you. There are many licensed casinos which turned out to be scams and, at the same time, there are many trusted services which do not have a license. Having a license has its benefits but it has nothing to do with reputation and it doesn't guarantee you won't get scammed, imo.
True, but with the huge number of scams that we have in the market of cryptocurrencies many people will prefer to play in a casino that has a license, as at least some procedures were taken to verify the identity of the persons behind that casino.
And unfortunately this means that many gamblers will have to accept identifying themselves at some point, however as you say this is not a guarantee, which is why many gamblers are mad they still have to identify themselves as in any other fiat casino but they are still getting scammed at an alarming rate.