Gambling with cryptocurrency has many advantages over gambling with fiat currency. It is of the highest interest among gamblers especially for quick payouts. However in both ways a gambler has to make KYC. I don't need to worry about KYC in the best gambling platforms. Because they provide good service for which their site has high reputation. KYC is an important factor in any gambling or casino platform, online or offline. There is no option of gambling by ignoring it.
There might be some options available right now for gamblers to gamble without completing KYC verification, but there won't be any in the future, so it's better if people start getting used to the habit of completing KYC verification at trusted platforms so that they don't have issues doing it in the future. Regulations have been catching every single platform lately, authorities are even eyeing decentralized platforms to be regulated in the future, so there won't be any left.
As you said, one shouldn't really have any issues doing KYC verification at a platform that is trusted and they know it wouldn't misuse their personal information and documents, and it's better to avoid new and untrustworthy platforms if they are asking for KYC verification, if they don't ask for it, one might try them out.