Some people have chosen crypto gambling because they prefer to keep their identities in private and they don't want to expose their identities for some reason. If they will just keep in mind that complying with the KYC is no big deal then they won't make it a big issue. They Shouldn't fear KYC anymore because most casinos nowadays require it. It's also for our own safety and so far, I haven't heard any bad feedback about KYCs.
It is true that some people want to gamble and also want to have privacy, but casinos too are centralized casinos, they can make anyone to do KYC at anytime, people need to change that type of thinking, even when there are still some casinos that you may not provide KYC documents.
KYC is not for the safety of users. Because you do KYC for your gambling site account, it does mean your account is safe or that you can not be scammed, you can still be scammed if you do not practice safety and security measures. KYC is for regulation purposes, not for the safety of users.