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.
Agreed. KYC related discussions were less in number several years ago because most crypto gambling sites never asked for KYC unless absolutely necessary, but that has clearly changed in recent times thanks to the rise in popularity of crypto.
What's messed up here is that some sites actually use KYC as an option excuse to avoid paying winnings leading to rising customer complaints.
That's why at this point we have to ensure that we are playing in a reputable casino because they'll not gonna mess their reputation just to steal our money. If they have a good reputation to protect, they'll value their gamblers, they'll pay whatever is due and will never use their TOS against the gamblers to scam them.
Some gamblers when required for a KYC, they'll just say no and let their funds getting confiscated because in the first place they could not comply the requirements. So them as a gambler, they are aware that one day it'll come, so they enjoy while they can but at the same time well aware of the risk.