If there were a bond or unity among the citizens of a country to pressure the government regards the extinction of KYC enforcement to online casinos, the government would accept the order of the people. However, only a small portion of the population is concerned about sharing their personal data online. Most people are fine about doing it blindly, without thinking twice... There is only a minority unhappy left, and this minority isn't sufficient to confront the government in anyways.
And the few individuals who will try bypassing the government's regulations, playing at decentralized casinos will be persecuted and punished by such governments, as will the decentralized casinos too for operating without permission from a local authority. For that reason, casinos prefer demanding KYC, instead of going against governments' regulations.
That's not how law works from my little knowledge of the government. Every country is rule by a constitution and that constitution remain valid as long as they want it to be and it's not the function of any government to change laws like that especially when they think it's a threat to their own nationality, it will remain as long as they want and I'm not sure issues like KYC is something masses will want to protest against because how many people are even gambling and doing crypto, some that do crypto the majority of them don't even know anything about privacy and data protection, they just want to make money is their concern.
KYC will be hard to abolished because it's what the government practices, it's what the judiciary, the legislative and the executives all practice because all of them have bank accounts that are all documented, all their information is in their database and you think the government will allow things like KYC to stay off from gambling that involves finances and transactions, it's not possible but if they do, it's the best option.