In my opinion, KYC requirements in regulated gambling sites can be viewed from a security perspective. When we gamble on a site that is regulated, it often means the operators need to adhere to certain security and transparency standards. These standards include verifying the identities of their users to prevent fraudulent activities.
As for me, the main problem with the KYC requirements both at gambling sites and centralized exchanges is that it is not known how exactly and for what purpose the personal data of users are used. I mean that if you give your personal data to any company, you shouldn't be surprised that your data can be stolen and used by malicious people at any time. Unfortunately, there have been many such cases in the crypto industry.
This is exactly the reason to refuse to play in this casino due to the fact that you are required to introduce yourself and undergo a KYC check, and the player himself is afraid that his personal data will eventually be stolen and can be used by some people unknown to him for various purposes .
And the purposes of this use can indeed be simply harmless, such as targeted advertising for gambling business or new casinos.
And also, if this data somehow got into the hands of criminals, then the purposes of their use may be of a criminal nature, even to the point of some kind of action similar to extortion or even blackmail.
Since quite a lot of people in the world are really afraid of such contacts with people they don’t know, many don’t want to go through the KYC procedure. And such people need to be understood and, in general, they should not be deprived of the opportunity to gamble anonymously. Therefore, individual and even fairly well-known casinos should not introduce mandatory KYC verification and even tryy to change jurisdictions in order to preserve the opportunity for anonymous players to also play.
I hope that some small country or territory will eventually make local laws that will allow casinos not to require KYC from players. That would be right and great.