It also became stupid because the documents gathered using this Know Your Customer process can be used on identity theft and other illegal related schemes.
This is one of the reason why many gamblers are hesitant to comply on kyc verification or staying away to casinos who have such requirement. There's a possibility for our informations to be used in illegal activities if there's a data breach. Anyhow, there are still casinos who don't require their players to undergo this verification unless the account is suspicious or exceeds the limit for withdrawal (often this is the case for sudden implementation), so we must be prepared for this if you still want to play in a crypto casino.