Some casinos that pose themselves to be decentralized are not totally decentralized. It cannot be decentralized and still be requiring KYC. Whose serve will recieve the KYCed data and for what purpose.
A totally decentralized casino is been hunted by the government and used for illicit purposes and that is why they do not gain much public popularity. Also the difficulty in setting it up is not what someone that just want to gamble for fun will want to do.
Whatever the type of casino, we can find it easily, especially since we have joined this forum for a long time, so we already have a list of casinos. And if we want to do KYC, we already know which casinos are trusted and which are scams so we won't worry about anything.
And even though the casino is decentralized, if we find indications that it will be a scam, we will not choose it but look for other casinos. So let's try to find out more about a casino before choosing a casino.
And trusted casinos will always try to protect the data or everything in the casino. And the casino will always increase vigilance and security so that data will not be leaked, stolen, or even hacked.