Money laundering mostly stops by wagering requirements. Casino KYC you if they have doubts in your honesty. Unfortunately, such doubts they have if you begin to win. And they have no any doubts when you deposit money.
On one hand - there is nothing to be afraid in KYC. On the other hand - today KYC is used mostly against gamblers, not for its real purpose.
The reason why most person are all very serious about their KYC is because most of the time some casino do sell it out but although some of the casino that do that are the ones with no reputation at all but even at that many gambler are still very conscious of the data they do submit to the casino. But like you said there is actually no need to panic if you are clear beside it's a matter of seconds or minute for the verification of the details you submit for reputable casino.
You share your data everyday - social networks, delivery services, banks, etc. But you think that only casino can sell your data. And you can`t don`t share your data if you want to make your life more comfortable.
The best way is to think that your data is sold. Take care about your bank cards and mobile phone, use 2FA and sms confirmations.
That`s why i say don`t be afraid of KYC.
By and large, the widespread introduction of non-cash payments has almost completely eliminated the element of anonymity in payments. And you are right that it has become impossible to carry out banking transactions or payments using plastic cards without identifying the payer. But such human actions as universally disclosing one’s identity to just anyone, including any shady or even fraudulent casino, cannot be considered normal. It’s just that you immediately provide information about yourself that other businesses may not know about you. This is information about your gambling habits.
That's all. Leaks are inevitable. And at least above all, the mobile phone is polluted with contextual targeted advertising. But is this really what you need in your life? Most likely this is clearly unnecessary for you.
Therefore, you still shouldn’t provide KYC verification data to just anyone and on their recommendation or even on the first request.