I done see a reason why a casino would demand for those things in other to verify your KYC. Unless it's a local casino that's only based on your region but still it's kind of ridiculous to demand a shot with news paper on your hands just verify your address. However it would be kind of complicated if the casino had requested for the KYC while making withdrawal instead of request for it immediately you signed up . Some of these casinos are scammers which means you must be careful the ones you deal with.
The reason why casinos demands for KYC from customers are enormous and very important at that matter. Casinos before they adopted the KYC policy was used for some illegal activities like money laundering, fraud and even terrorist financing. Other reasons are to help casino companies by get the real age and identity of their customers to avoid underaged children from using casino companies to bet so unless you have something opposing to the above listed reasons, I don't see a reason why you should kick against KYC.