The regulation happened make those No KYC casino became probe of elimination. That's why we see that lots of reputable casino became compliant with what they required to do.
Although some casino remain their No KYC thing but just have certain limits.
At this point many skeptical to test those No KYC casino, but if they manage to get a good standing in this community and remain no issue shown or posted by people here maybe they could able to get more people that willing to gamble in their casino.
Regulation sucks but we cannot do anything but to comply so that we can gamble on our favorite casinos.
States need to raise money in the form of taxes somehow. Can you imagine how much money is being spent in casinos and the states want to have their share of their income and the winnings of casino players?
Therefore, they are considering regulating the KYC procedure so that all winnings are visible and transparent.
People in all countries are using cryptocurrencies more and more often, so governments in different countries are forced to regulate cryptocurrencies. No one wants payments to be anonymous and unregulated.