Legal Liability: This is the biggest risk. If your KYC ends up tied to something serious like money laundering or terrorism, authorities won’t hesitate to go after you. And since it’s your name on the account, you can’t simply deny it, you already submitted your documents.
This is the main reasons I always discourage that, but
not only about gambling but about all other things that require KYC, like on exchanges also. To avoid anyone using your identity to steal or elicit criminal activities, best to avoid using KYC.
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Exactly, and even more: for activities that involve little money, I would avoid doing KYC even for myself when possible. Because your credentials can be used wrongly by your friend or a third party if you give them directly, but your personal data is sensitive information that shouldn't be given without a good reason, even when they're not supposed to be used by anyone else. Although we're being educated otherwise, in the culture of not caring about them, and the KYC everywhere.