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But even if truly, users data is encrypted as they claim, the encryption may likely be against scammers and hackers, not against the authorities, for I know that casinos will remove any encryption when it is requested for by the authorities.
Firstly, it's not gambling sites who keep the data, it's third party companies like Shufti Pro, Onfido and others. Secondly, if you don't believe that data is encrypted, when well-respected companies claim so, you might as well do not believe that the earth is round, that slots by respected slot providers aren't fair and stuff like that. It's to hard to live in this state of mind, mate. Change.
And yes, if authorities have a proper warrant, the the encryption will be removed. But that's a good thing, don't you think? They have to fight money laundering. It's for our own good.