Drivers license is already that a valid ID i should say or even making use it on exchange verifications this one is really that already enough. It would really be that a shit condition or situation if you would really be having that kind of condition whereas platforms would be asking out some passport.
I think they suggest that his driver ID is outdated or they can't verify it, not to mention their reasoning that there number of fraud cases is increasing so I can see their point as to why they need other IDs from OP. Whether you think that's too much or not, I'll leave it to you, but it's not like they don't give a reason at all. It is the usual "read the ToS" situation. I don't think other businesses will do this differently, especially if they're bound to some KYC law and so on. That being said, they should've prevented any users from depositing or playing games if they were not allowed to withdraw imo.