Most of these user is trying their luck by playing on stealth mode despite knowing that they will experience issue when they KYC since their residency is not allowed.
Stake approves KYC without any hassle like this, they just extend the verification level if the person activity and ID show some concerns for the verification team to approved it.
You are correct because if not for these acts, there would not be many issues for casinos and the platform to be attending to cases as of kyc from restricted nations or so and most of them use VPN to bypass protocol which is not alright and when it gets to withdrawal, that is when they would start complaining of casinos being too harsh and banning their accounts when in the reality they know what they did thinking they could outsmart the casino and go away with it forgetting that the casino has all the mechanism put in place to properly conduct their exercise to know who is really legit and who is cutting corners to undo them.