I agree, it is dumb for a casino not to KYC a player before they sign up, because they could deposit their own money/receive a tip, and try to withdraw but that money is just gone. Makes me think some casinos are thieves, such as roobet. Happened to me, but I ended up just KYCing, but for people who don’t have it available, they just have frozen money.
Really disappointing but these days, we have to prepare for that as they will be able to ask you KYC anytime. That is why it is better to choose a legit and reputable site so if they ask for that we don't bother and worry about complying with it knowing that they will keep it and not use it for other purposes.
Nowadays, it is an urge by the government as well for casinos to do that in order to avoid fraud and other illegal transactions, we have to admit that it was a drill for them otherwise, the government will stop their operation. We have to admit that our privacy is soon to be over, we can't hide anymore.