For Stake to even give anything at all (even if it's $1) means that they truly care, many others would have forced you one way or another to complete the KYC without giving you a dime.
They are a business at the end of the day and this is just a clever tactic to ensure that their customers quickly complete their level 2 KYC verification since they have no shortage of money basically.
It's a mutually beneficial tactic, but it sucks to see more and more proper crypto gambling sites become centralised in this manner which we all knew was coming.
Earnonvictor is right any way, Stake is just one generous casino to be honest, not saying this because I wear their signature or whatever, I am saying this just as I feel it is, stake is generous and also love and don't want to lose their active customers based on kyc issues, most other casino will force their users to complete the kyc verification or you lose both your account and the fund in it, but stake understanding the plight of gamblers as it concerns kyc decided to atleast, compensate some qualified users for the little time and effort it will cost them to submit the required documents for kyc level 2 verification..
And on the other hand, what is expected doest suck or should not suck since it was expected, it's not coming as a surprise to anyone that already before now, know that centralized services that deal with money is mandatorily required by regulators to know their customers true identities as a way to curtail and prevent fraud and other vices of monetary crimes.