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Testing waters would really be just that only good on the moment that you would really be trying out those new casinos on which you will really be having that testing out the waters first on depositing some small amount of money on which you could really be able to find out that everything is really that working well and not really that having those issues or you do look that it do operates well and fair.
Some people do really make out some direct huge deposits on the time or moment that they will really be trying out to deal with sites. Its not bad to test new sites yet those old sites
are once that new and by the test of time they had become that getting that trust by the community and able to become that credible.
Everyone should do as they please and it is their own business. If someone thinks depositing $10,000 USD is no big deal, then so be it. But especially when it comes to larger amounts, which doesn't apply to me by the way, I would prefer a well established casino and probably go through KYC first. You could see here in the forum that despite having gone through KYC, with some casinos trouble can still arise. I know it sometimes had to do with the players themselves, but it is no different with unknown exchanges. I haven't used a less popular exchange in ages because all here know probably the shenanigans to which you suddenly have to go through.
In casino I get the point that players can apply methods or open multiple accounts or use a VPN or whatever else makes their winnings/the whole account invalid. But I had the same experience with some exchanges years ago. Everything works fine with small deposits, you could do a little bit of trading, withdrawals were no issue although they mostly charged outrageous fees, but then you tried it out with a bigger deposit, did some trading, wanted to withdraw and there you go, funds are stuck, customer support sucks and you are nowhere able to get answers, let alone a resolution to the problem. You usually don't have that with exchanges that have been around for a long time and have built a reputation for themselves and I see it the same way for casinos.