There may still be casinos that don't ask their users to do KYC if they don't withdraw big winnings and allow them to do so. And I think so far, the casinos are not very strict in implementing KYC to their users. Maybe they'll ask random users for KYC or maybe because they suspect an account is suspected of cheating or something.
But if the user doesn't want to submit any paperwork to the casino, maybe they should be able to find a less KYC-minded casino. But he also has to pay attention to how much money he uses to play gambling.
Yes you are right about that mate every suspicious account they do some action and some of them been ask for KYC in order to prove that they are cheating or not. And some of them the withdraw will be hold until the user of the account had been found out that they are doing good. Then they're able to withdraw but if not then they will be an issue of their withdrawal or else they are not gonna make a withdrawal anymore.