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.
Business tactics or not, many casinos will not give you a dime and will still force you to complete the KYC one way or another. It could be good for those who do not have money with them and still have the opportunity to know about the situation to avoid the casino. They will make sure that those who have the money there complete the KYC before being able to withdraw their money, and will also ensure that they silently achieve the same with any fresh deposits. However, Stake did not do that, but 1. it publicly announced it and 2. also offered a reward, that's awesome!
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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.
This is not new, Stake has always been centralised.