I once won x500 on a local gambling site in my country. Here we don't need KYC for gambling because gambling is still very illegal here and you can even deal with the law if you are caught.
That's good, if you win at local gambling and yes, usually local gambling won't ask you to complete KYC, especially if it's also illegal in your country and you'll deal with the law if caught, but it will be different if the government in a country that legalizes gambling might ask for implementation. KYC on local gambling and taking taxes from local gambling, but because gambling is very illegal, you say, it may be free from anything regarding KYC, but with a very big risk if caught.
Most of what is meant by KYC is usually only in online casinos because they stipulate it because of regulations from the government where the online casino was established and maybe the online casino is also under pressure to implement KYC to its users then the government takes taxes, in this forum there will never be an end to talking Regarding KYC, it all comes down to the wishes of each gambler because some are worried that KYC will be misused and some are not, I prefer to play with smaller bets without having to complete KYC in full.