We have to accept the reality, our expectation is not happening anymore as crypto is regulated, therefore casinos that are using crypto should also be regulated. The only difference or advantage of a crypto casino is it has a lot of options, before it was only bitcoin but now they have added altcoins which makes it easy for us to choose among the many altcoins and we can save on the fees.
Just stop thinking that we can still achieve anonymous gambling as it will not happen, unless there's a popular decentralized casino that will boom in the future, but as of this writing, I haven't found one yet.
I accepted this fate long time ago because I view this as innovation instead of hindrance because I can play on a casino in long term without the fear of them running away with my money which happened frequently in the past way back when casino offers only house games and doesn’t have license.
Right now, The only danger of providing KYC is there’s no guarantee that casino can protect our credentials 100% against exploit. I have no problem providing KYC if there’s an assurance of safety on our data which casino nowadays is still not con that level that they can give us 100% protection from exploit because even themselves still getting exploited with tons of funds due to security breach.