Asking for KYC verification for a Casino crypto project is not necessary, even most of the traditional bet bookies for sports betting do not
Anything that has a relationship with “gambling” shouldn’t attach KYC verification to its platform because it places a limitation of which some persons may not be able to reach, so yes, asking for KYC Verification I think is a misinterpretation of what web3 and “gambling” represents in general.
This is a complete misinformation about the purpose of KYC on gambling. Crypto is now being regulated same as fiat due to potential exploit on casino for coin mixing to commit money laundering. KYC is the main requirements for Anti Money Laundering policy given by the license provider to the casino that availing their license for legal purposes. We are now on an era that government is already regulating the use of crypto compared before when crypto is still on the grey area.
Mass adoption incorporates a regulations since many people is already involved. There is no decentralized thing on a business that has a license to operate. Only Bitcoin is the decentralised in crypto and the rest is just a pure bluff.