for me KYC in gambling when needed i think is fine. meaning if a gambler enters on a gambling platform without KYC and after getting a big win he wants to withdraw all his money and is required by KYC to verify if he is not a robot or a criminal being manipulated in gambling.
well, it's really not recommended for KYC on gambling platforms or a gambler also almost doesn't want KYC on gambling platforms because of the risk when stored data will leak. but if you don't do anything during KYC the winnings cannot be withdrawn because each gambling platform has its own policy. i myself will always take risks because life is full of risks. choose to risk victory or not forever.
and i believe the gambling platform mentioned by the OP is a reputable platform that we can rely on for the security of our personal data
Well it's like you say, everything is a risk, in the event that a person plays on a platform where they make profits, if they are required to have a KYC then they must do it, in my case if something like that happens to me in Duelbits I would not hesitate to put all the KYC that I can, however something that would bother me is that my KYC and for unimportant things tell me that I have to do it again, as happens in some Exchanges like Binance that for KYC are quite annoying, sometimes people It is difficult for them to get certain papers, and that is something that can sometimes bother them if they do not approve it, I prefer to do a KYC with video, identification with a name, something like that, that are not so radical.
to be honest, if I were given the choice to choose KYC on an exchange or on a gambling platform like Duelbits, I would prefer KYC on Duelbits. because actually for me bigger hacking vulnerability is on exchange compared to gambling platform.
but I still do KYC on the exchange because I need a bigger limit when I want to withdraw my assets on the exchange.
so like you said i get profit from gambling and i need it, so it's ok if i do KYC on some popular and reputable gambling platform like Duelbits.
without kyc you have opportunity to use decentralized exchanges btw we are using centralized to get no limit, and so many additional features,
i agree with you i have no problem if ask kyc in trusted gamble site.