Sharing your private info doesn't keep your money safe if the service fails for any reason, you will lose your money, and your sensitive info will probably be sold on the dark web.
That's true.
Complying to KYC doesn't mean that they're securing our money but we're just compliant to them and they're also asked by the regulators to do it.
There are also those staff that are taking advantage of their position especially those that have access to their database. Try to test out a new email and register it to any casino, if the data is leak then you'd receive tons of spam emails.