the objective of kyc is not for government is to be assure of the particular account so that they will not be commitment of any site fraud with the such a particular account government cannot demand for kyc verification of any account it is that particular platform that will demand for it because they know actually what is their target and there are selective to know people who want to patronize them I think about it should be the essence of having a kyc
I think for any casino that wants to be free of clear of any alleged involvement with any potential criminals or money launders should definitely have a firm KYC policy and AML policy. Others who do not will pose as liability risks if a government should ever request this information from them and they don’t have it, unless it’s legal in that country and not a requirement to have such policies in place.
It is not as if casinos right now have too much of an option, years ago it was common for many trusted casinos to not ask for KYC, unless there was some suspicious activity or you got a big win.
But governments fearing the popularity of the market of cryptocurrencies as a whole, and taking into account the rising popularity of casinos since the pandemic began, have taken the decision to be more forceful with businesses like CEXs and casinos, so now if you are not willing to identify yourself, you cannot really make use of those services anymore.