On top of this, one of the problems is that a lot of sites now use KYC as their excuse but were planning to steal the money anyways, so then you've given them your full identity and documents when they were already planning to scam, just making it more dangerous
Yes, in such a scenario, KYC is an element of risk assessment - whether your money can be stolen without problems or not. They evaluate first of all your jurisdiction - whether you can file a lawsuit against them. And only then being on sanctions lists and the like.
first of all, how to know a site that is following guidelines as long as kyc is concern is to check how much their performance have been in terms of frequent changing of the terms, and how the resolves issue's as regards and relate kyc and accounts restrictions are concerned, because alit of time that is the place where the while crisis starts from, since kyc arw triggered for a number of things which balance is one of such, e.g when gou want to make a withdrawal that is above $5000 you may be asked to verify your identity at that point.
So when you are asked, if you want to go through a kyc from a casino you shouldn't be confused since you agreed to that fact about the casino and how best their handle the issues with kyc and how best they follow it.