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,
That's right, I'm also one of those people who prefer to look for illegal gambling sites in my country because we don't have to bother with KYC and whatnot, unlike legal gambling sites which will certainly have quite a lot of requirements to fulfill including KYC itself. Incidentally in my country gambling is still very illegal and of course because of that most people in my country are more looking for illegal gambling, I don't really care about the law and it seems like people in my country are also the same about this issue, even though on the other hand there are quite a lot of people who have been arrested for this gambling in my country but it seems that the number of gambling is even increasing, and of course some factors are also very likely to be their reasons, such as a poor economy that makes their mindset messy and considers gambling as a solution to increase finances, I understand that it is wrong but it is difficult to justify their mindset.
Yes, it makes sense, for some legal casino sites in some countries, the provisions for KYC are definitely the most important requirements, as you said, very strict regulations are due to pressure from the local government as well, these two parties between the casino and the government will certainly contribute to each other, the government benefits in terms of taxes, and the advantage for the casino is that the number of gamblers will increase because of easy access.