Yeah! Casinos without KYCs for government to have part in the running are always main target for sanction as they would tag all their activities to be an illegal one NMW and there's no way they can just themselves
Governments are just concerned with the both the gamblers and the casinos itself .
The majority of the casinos without licences only run for a few months or years but doesn't have the capacity to run the operation for a long time since at anytime the government get through to them it will definitely become the end of their operations.
So for contemporary casinos that have long term in views it will be very necessary to get the license needed to operate as legal company and at that will implement KYC to comply with government demands.
Of course, the government will see it once the business gets bigger and they'll require them to get a license or ban them.
However, what can you say about the growing popularity of Web3 Dapp games or gambling? I saw a lot of platforms being promoted in the forum already and they are getting a lot of bets, can they disrupt the gambling world? How would the government regulate it then if it's decentralized?
I see some decentralized casino before to be not worth playing but it has become competitive now with this web3 Dapp, so it's easier for the gambler to trust it since they are using a non custodial wallet, we link our wallets and we can withdraw anytime.