There are still people who are faking their identity in KYC since I can still see some advertisements that someone is paying for a service on doing KYC. There will still be people who will try to beat the system no matter how hard the process it would be.
Gambling sites do not verify selfie photos or face verification so they can be used to fake KYC identities, some users do that to avoid giving their real identities and they always do that for every casino that KYC is requested for, identity falsification cannot be traced on casino systems or even exchanges centralized but using fake identities is also risky because if your device is hacked or your device has been stolen then we lose access to accounts, emails and passwords so it is important that the KYC factor restores them.
If someone uses a fake KYC document then it is a clear proof that he has done it for some kind of illegal activity so those who do so must be careful. And those who are a real gambler and open an account and kyc on a casino site for the sole purpose of gambling they must use real documents. So in this case the gambling sites should observe the kyc documents well. And if necessary, launch the Face verification system