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.
That's different as KYC is a requirement, it doesn't ensure anything about how the business (casino) will handle their operation. But if they are following the guidelines of the regulators, then our money is safe and the same with our information. Don't be afraid to submit details or documents in a casino because they are also required not to disclose it, or keep it confidential, just like how a bank is required on their depositors.
We comply, and they comply as well.. that's 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.
As I said, it's on how they handle their operation, if they have staff that breach the contract or the policy, then they'll be dealth accordingly as the company's license is also at risk if they can control the people they hire to help them run the business.