Not all gambling website require KYC in my opinion this wasn't worth it, there is a lot of gambling website that is already trusted here in the forum that doesnt required you some kind of KYC. There are a lot of members here that is not going to give KYC that easily just because it's a requirement, normal it's already a red flag for some members, I think it's already become a big issue so some gambling website doesnt required it anymore.
In my opinion, it's not safe to do KYC on gambling websites maybe you can make an exception to the other trusted and been running for years gambling website, But still I would give my information to this website also there are a lot of gambling website that shut down. Who knows what they can do to your information after that they might just sell your information illegally and it could easily be used in illegal activities. Just don't risk it, I mean it wasn't really worth it just so you could gamble.
We don't know what the casino will do with the KYC documents provided by its customers. But if it's a trusted casino, I think the casino will take care of it and have no intention of selling it or giving it to other parties. In this case, the trust that their customers have given is really maintained by the casino because they don't want to disappoint their customers.
As long as we do KYC at a trusted casino site, I think it's safe because the casino will do everything to ensure the customer's data is safe. With the government's intervention, it seems that all businesses will be asked to do KYC so that we, customers, cannot do anything. But we can still choose where we want to play gambling because playing gambling is not because of coercion from other people.