In theory, the government is actually everyone in the sense that money evaded from the governments does not get spent in the general interest of people so governments tend to prevent anything that escapes their financial control so dealing with crypto or casinos is the same: make sure you get money while making sure there is enough incentive to keep the business going.
but in the end it is the casino that keeps following the government requirements or else they
will be bugged and that means Government will always succeed and will benefits from everything about this .
and in the end the gamblers will be the affected party in this situation.
That's why somehow they need to comply since there business will be affected on regulations set by government if they didn't obey what required them to do. So at the end it will force their clients to submit their KYC since this is what has been asked to them.
Government always have a say on this that's why people should not be surprised if something like requirements like this has been asked especially on their favorite casino since that means they are just following the orders of government since and they want to run a good business. Although some gamblers might really get affected but its up for them to decide if they want to proceed or not.