actually related to KYC which is enforced in casinos there are good and many benefits. but sometimes anonymous gamblers don't want to do the KYC.
it's true what you say if a casino asks its customers for KYC, it means the casino suspects suspicious activity such as money laundering or bonus abuse etc. so that the casino has full rights to ask KYC to its customers who feel there is unusual activity.
and basically, if the casino is licensed but not KYC required, it will eventually ask its customers for KYC when there is a problem or a large withdrawal. so for me when I want to bet at a licensed casino, I will do KYC earlier to avoid if there is a problem I won't be asked for KYC again.
KYC prevents fraud. If the casino suspects that a person is cheating, it forces him to undergo additional KYC procedures. If a person bought an account with KYC or fraudulently passed KYC, then he will not be able to provide supporting documents, and therefore will not be able to withdraw money. Therefore, in this case, there is no point in cheating.
even KYC does not guarantee that a gambling site is safe from fraud, money laundering and misuse of personal data. Have you ever heard of the case of a schoolboy using his father's personal data so he could play and even make withdrawals at an online gambling site?
I don't really like KYC but the noble purpose of KYC is good enough for me. someone who doesn't like KYC can use other gambling sites but those who don't have a problem with KYC can still do it, because usually gambling sites that require KYC have sufficiently large and safe fund liquidity