...since it is mostly fraudsters and criminals that doesn't like their identity to be known when involving in any financial dealings with any company or organization.
There are such fraudstars and government does not like having them use these casinos as mixing depots. Hence it was expected long back that things will turn to KYC after a while. Common law-abiding citizens might face the problem but it is part of the system now.
Government has to answer for people wrongly moving money, they have to take these steps. Hence casinos will not stop it, but only become stricter or try to maintain a middle group from annoying regular users to repelling frauds.