...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.
The government is doing what is good for the people and protecting us from fraudsters who use casinos as mixing points to hide their illegal activities. Apparently, it was not new to us and now it is increasing more which seems alarming and I don't see any reason why we don't let the KYC system be implemented when knowing that it is for the welfare of everyone. It even saves the casino from getting involved in such a thing. And I hope this will be understood by everyone knowing that we all benefit from this. I even expect stricter rules in implementing this someday because until now, frauds are still there.