I don't like the KYC procedure because I have to take an image of my ID, take a selfie with it, then upload it and wait for the answer, then the support asks me to submit my bills, which is impossible in my region, and then the headache comes. For these reasons alone, I prefer to gamble with small amounts of money but I found Web3 casinos like Metamask very useful because it lets me gamble without human interaction.
Btw if KYC becomes mandatory everywhere, we will be forced to submit in order to continue gambling. I think that I'll submit KYC in a casino that I trust and continue gambling but I also think that I might visit bustabit and l0tt0 more frequently than before.
I'm not fond of it either, but it's already required in casinos. Perhaps it will become more regulated in the future and be necessary to be submitted when signing up. I personally wouldn't change something and would submit KYC; I'm not wagering large amounts of money nor am I hiding something (I know it's a privacy concern as well, which is just as important). If that were to happen, I'm pretty sure more KYC-free alternatives would appear, as there would be a larger audience then and safer options might be more available. Certainly, they won't be regulated, whatever than means regarding their safety, but we'll see if and when that time comes.