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?
If a casino wants to stop demanding KYC, then they could move their headquarters to a country that doesn't have strict financial regulations. However it is a catch 22 situation for the customers of the casino, because the when these companies move to sketchier jurisdictions - where you might be able to bribe a politician more cheaply than deal with valid complaints - then it is the end user that suffers. There is less infrastructure in these countries to defend against things like DDOS attack extortion and such services might be restricted when these casinos don't want to collect KYC. There is a complicated matrix of trade-offs but generally a customer will be safer in a jurisdiction that requires KYC.