People who commit crime and hide themselves from casino or government because they can use fake document to verify their account. That's why casino really carefully to verifying the document from their members and doesn't want to make a mistake. That's why casino needs time before they approves their members to be their verified members in their place.
Alot of people will use casino for laundering of money and other illegal activities if KYC are being removed. Kyc have stopped criminals from receiving money through casinos therefore KYC should not be stop from casinos. If you are not hiding anything, you will not be afraid of doing KYC on casino. The only fear is for the casino selling our KYC to others but if the casinos are being honest and they are going to protect our informations, I do not see any problem with completing my KYC. There are some decentralized casino that if you do not like completing your KYC on centralized exchange then you can use the decentralized ones for gambling. Casino are becoming strict with their KYC demand because the government are asking them to do that or they will lose their licence and they do not want to lose them.