KYC is only needed by casino platforms for their obligations because it is regulated in a region and casinos need this data as verification with the regulator. The presence or absence of a KYC feature does not make a casino platform untrustworthy, there are also many casino platforms with KYC that end in fraud, but there are also casino platforms without KYC that are still operating today. So I don't really agree with what you said.
However, with KYC it becomes more secure for users, because users are verified and if there is a problem it can be followed up quickly by the regulator, whereas on platforms without KYC users are not covered by any protection.