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.
That's why casino doesn't want to removed KYC for their members because KYC can help casino to check their member's background so they will not worry with anything especially if there are an audit comes from the government. Criminals should use the other ways and not trying to use casino with strict rules to launder their money or use it for other illegal things because casino now been monitored by the government.
When we want to do KYC, we must ensure that we do in the right casino that can protect our data from the hacker. We must search for the casino that have reputation so we will not feels worry with anything bad especially if casino selling our KYC to other third party because chance can happens. If we don't want to do KYC, we must search for casino that doesn't have strict rules so we can playing gambling but we must limits our money and time.