I have not yet been asked for KYC in cryptocurrency casinos. Probably because I make low stakes and my withdrawals have been hundreds of dollars at most. I wouldn't like having to send my documents, but if I won a big jackpot of thousands and there was no other choice, I would do it, also thinking that I only bet on trusted sites with reputation. But I think the imposition of more and more KYC on crypto casinos takes away some of their appeal.
Err I guess I trust the ones that I do KYC with? I've never had issues after all with the ones I've played with. I don't know how the process of KYC goes exactly in these casinos so I can't really recommend a way to improve the accuracy of whatever they do, maybe convene in cases where KYC fails? What are the possible issues when KYC fails anyway?
Your experience is like most people on the forum, there is no general problem with people sending KYC, but I understand that the fear is also that your data once sent may end up in the hands of third parties.
If the casino sites are trusted and approved by the government then I have no problem submitting personal information but if the casino site is temporary and weak in terms of security then doing KYC remains a risk.
By the government? By which government? The government of Curaçao, which is where most crypto casinos get their licenses?