KYC is not a hindrance in the growth of crypto gambling as people are ready to do KYC in return for doing crypto gambling. The advantages of crypto online gambling are more than fiat gambling. So that is the reason that online gambling is increasing day by day as more people are leaving physical gambling or gambling through fiat money and moving towards gambling through cryptocurrencies.
KYC cannot be avoided in online gambling or offline gambling, so I don't think we have a choice of gambling without KYC.
I also go along with your suggestion on this, there is nothing to cause hindrance to the use of casino gambling platform because of KYC, what i only noticed about the gamblers concerning this is a frequent complaint about it, which if they were able to make provisions to all required information's needed by the platforms, they are going to enjoy them, and despite the KYC challenges, may are still finding it more attractive and interesting in using any online gambling platform because they can afford their kyc requirements unlike other gamblers who couldn't.