Yeah, I read their response about this case, and it's good thing that Razed had paid their customer and will change their sport provider. And so it was a happy ending and their reputation here stays, so everything is good not for the user.
And again, seldom we see that a crypto casino is this open about scams accusations against them, but they proved otherwise.
Good question though, there's no harm done here so maybe he will stay with them and continue to play.
Their initial reason about the KYC of OP is plausible since they are accusing him as part of syndicate which is hard to believe that a syndicate will use recycle KYC for their casino account.
Probably they just have a hunch on the issue then later on realized that everything will be verified once this user seek help to arbitrator that will request them the documents for verification.
Their hesitation to escalate the issue means they value a lot their reputation on this case.