That is the standard KYC terms, I believe 90% or even more casinos has the same terms related to KYC where the casinos reserve the right to ask KYC anytime.
I dont get why he can say that such term can be harmful for the reputation, if it is a harmful then most casino has already lost their reputation because most casinos has similar KYC terms.
As what I you said, players creating an account agreed with all the terms so it has nothing to do with reputation unless the casino make a sudden change in the terms to do something against the players.
Anyway, this KYC thing seems to be a never ending discussion as it is being discussed in so many threads LOL.
With a latest charge of DOJI on founders of Kucoin exchange, it's another victim of DOJI after Binance exchange.
They will not stop at Kucoin and I believe they will be able to find more victims from centralized exchanges. Before the charge against Binance and Changpeng Zao, many exchanges did not care too much about money laundering even they had that term in their ToS.
It's unclear that the time when Kucoin founders were accused with their failures to do AML on their exchange but Terms and Tools on Centralized exchanges only became more strictly and effectively to detect Money Laundering when laws became stricter.
If DOJI look too far to the past, many exchanges will receive more charges from DOJI, and surely not only CEX but casinos will be targets of DOJI too.