While to some, KYC norms may feel like a "no-brainer," they ignite anxiety in others, stirring fears of digital theft or privacy invasion. So, where lies the remedy? In robust cybersecurity. Esteemed casinos secure personal information, but remember, "safe" is a fluid term. Even with advanced firewalls and encryption, cyber-goons find their way in. Reflecting on gambler-involved misdemeanors, yes, KYC can dissuade crime. But, could this data, mishandled, fuel identity theft or fraud?
What you have cited are the negative scenarios that could occur based on the information submitted through KYC requirements. However, let's go back to the basics. Nowadays, casinos are mostly regulated, and this regulation makes them legitimate. However, it also comes with a price. Regulators impose KYC requirements, and gambling sites are obligated to implement them. It's a matter of compliance—either they adhere to the regulations or risk being excluded from the industry.
And even though the casinos can choose, they still cannot avoid it and are forced to follow the existing regulations because if they don't, the government might come by force and continue to pressure the casinos. And for trusted casinos, I'm sure they can secure their users' data properly. And even though there is bound to be an attack on the casino, the security team of the casino will try to protect the casino, and so far, the trusted casinos have done what needs to be done. Even though we don't know the truth, at least a trusted casino will do its job to protect user data.