this KYC issue is something very sensitive and we have to take it very seriously, for example you talked about new casinos that ask for KYC and that can sell people's documents and that is the reason why people are skeptical of KYC, I I agree, but this is not the only serious part of it all, the biggest problem is that the casino owners are anonymous but they are asking for KYC, the error is not in the casinos, but the error is in the people or governments that created the KYC laws that they committed error of making casino owners remain anonymous but their customers are not anonymous
Well the problem is that there are not many good gambling sites which allow you to gamble without KYC. Those who do not demand KYC are mostly not so much trusted. So we have no option but to do the KYC.
Yes, if you do KYC at a trusted popular site, the chances are less that the gambling site may misuse your KYC documents or sell those documents for any illegal activity.
KYC was created to combat money laundering, so can a person create a casino and launder money? why do they only look at customers as the only ones who can launder money?
Money laundering is just an excuse the governments and gambling sites give to ask the gamblers perform the KYC.
Money laundering did exist even more the online gambling exist and i don't think people will do money laundering by first wagering their deposits at the casino (and losing them).