Casinos existed without the need for KYC's until the government made it a requirement, and they started demanding it. IMO If the government no longer requires casinos to do KYC verification for new gamblers, casinos will go ahead and still do KYC verifications because they have seen the benefits of knowing their customers better than when they just allowed people to come onto their platform and gamble without their knowledge of who they were. What do you think? Do you think some casino's will revert back to non-KYC and allow money launderers, plus other fraudulent people have their easy way with them as a way to attract customers, or since they recognize the personal benefits of KYC to their casino, will continue demanding it even if it affects their customers?
I won't encourage casino platforms to stop demanding KYC. KYC help keep users in check and also helps eliminate underage gamblers, like you said if the government should stop asking for these KYC some casinos will stop asking new users for KYC, normally most users don't like the stress of doing KYC due to the stress or having all the necessary documents.
That is not a stress at all if in the first place you already understand that KYC is already must in a regulated casino. Besides, what they are asking as just documents that asa citizen you should have, like national ID or passport, so if you trust a casino, you'll not hesitate to submit it when they ask, or best if from the very beginning so you will not longer worry in the future.
Always keep in mind that casino does not implement their own rules, they are mandated by the goverment to implement it that's why they follow, because if they don't their license are at risk of getting revoked, so you know how risky for them to violate too.