Logically, this is correct. Before any bet is even placed, KYC should be required. However if this was the case, a lot less people would use casinos. So instead, the casino lets people play, lets them lose without KYC, and if they win, then ask for KYC. It's malpractice, at best.
This is working very well for the casinos since they are earning huge amount of money from players who are losing on their site.
It's no rocket science to understand that people are eventually going to lose money in the long run.
May be this is why casinos don't tend to ask for KYC initially and let players gamble without KYC.
If they ask for KYC then they will be losing their users but asking for KYC only when players win a lot is a like a win-win situation for them and they are using this method to their best.
You've got it right. At some stage, casinos realized that they can not just win from losing players, but also from winning ones, through KYC...and it seems that not only has everyone on the forum let it happen, but they deny that it happens. I'd say that's a sign of some form corruption, others deny that any form of corruption exists. What do you think about the forum allowing this kind of practice by casinos?