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.
Maybe verification with selfie photos or face verification, as done by exchanges, has not been implemented in casinos. Still, there is a possibility that it will also be applied in the future if there are many cases of abuse of verification or identity forgery. But for now, if a user wants to hide their identity, they should look for a casino that provides the facility to link their account to their personal wallet so they won't be asked to verify even though the casino will still ask them to verify later.
There's a high chance that the KYC verification will level up in the upcoming years knowing that it is easy to falsify an identity and with our latest technology, Even selfie verification and face verification can be faked. I wonder if deep fake is used on a verification by someone and if it passed the KYC. I wonder how do the casino fight those who are doing Fake KYC and how can they identify if someone is doing it on their casino. It is more easy to fake an ID now compared on the past years.