Now new casinos operate without KYC but once they get big enough, they follow the suit. It's pretty obvious that anyone who wants to run a successful casino on a large scale has to make KYC mandatory otherwise they get surrounded by legal issues.
New casinos who operate without KYC are just basically doing so to gain popularity and also drag gamblers to gamble on their casino platform but as soon as they have gotten enough gamblers and they start expanding, KYC will now become a compulsory thing to do before gambling on their casino and it's worrisome to see that in the future we may not have casinos without KYC anymore just because they are afraid being fined or charged for legal breaches.
However, a company that is growing rapidly and attracting government attention requires regulations to keep the company running, especially since they need a gambling license as a form of their dedication to maintaining customer trust, therefore it is a strategy to attract customers and also expand their business.
As long as they follow the rules and maintain their customer data and are trustworthy in running their business, it is a good thing for the casino and trust will increase for the casino.
Maybe some of us need casino decentralization to not comply with the regulations of a government rule.