If they arbitrarily and intentionally pull their KYC cards just to gain benefit for their casinos, even they currently are legit ones, their reputation will be damaged with time and it's hard for them to reclaim their reputation.

You need years to build up your legitimacy and reputation but only need one or a few cases to wipe it all. After that, even many years later it is hard to erase shady history in reputation and start to gain a clean legit reputation. Almost impossible. Therefore I don't think good teams behind good casinos will do that.

If they have holes in system that are compromised and they have deep pocket, they will accept it, pay the user and move on with improvement in their infrastructures.