Why does it happen that KYC is only asked when you try to withdraw money? Can't your funds come from illegal activities if you lose all the money in online casino?
Here is the thing: Casinos know that the real reason people don't submit KYC data is because of data leaks and at the same time these casinos know that they don't have top-notch security on KYC documents. But at the same time they know that regulations allow them to ask for KYC to their customers. It's like, they know people don't like KYC and some even lose their money and don't submit KYC, but on another hand, regulations allow them to ask for KYC, so, casinos are like, why not?
If you want the KYC, ask me when I register or deposit money, why do you ask me when I try to withdraw money?