Exactly, compared to some other sites which require a selfie with an ID and other stuff I think this form of KYC is still acceptable. For level 2 you don't need any other documents than just a simple ID so it's not that big. Of course I totally understand when somebody doesn't want to show their identity but if you want to gamble I think you don'r really have a choice. Other sites also ask for KYC sooner or later, that's just how it is. Here at least you get something for it. So there is only 2 way situation, do it, get 250$ and keep using stake or don't and stop playing from January.
Maybe they will leave the option open to verify later when you feel like it and reactivate the inactive account, but no clue if they will do that.
I think @CryptoWoman91 is more concerned about privacy than the KYC process itself. Even if they uploaded a fake ID, what if someday they require another verification, like a live KYC with a selfie? That could be tricky. It’s probably best to decide now, either go through with KYC or skip the bonus and keep gambling anonymously.