Identity Theft: Once you submit your personal info, and if that website ever gets hacked, your data is out there forever. It can be used for all kinds of online transactions, legal or illegal, and that can haunt you in the future.
Privacy Exposure: Many of us chose crypto because of privacy, but now KYC has become the norm. To keep playing, some people give in and submit. Even though casinos are required to keep it confidential, hacks and breaches happen. If that data gets stolen, you lose the privacy you came here for.
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.
Everyone knows the potential risk about submitting our KYC to a third party, not only about gambling. But it seems gambling platforms are forced to do KYC lately. Some casinos launch without KYC, but later it seems they implement KYC for various reasons, like for legal reasons. We always prefer to use a non-KYC platform, whether it's gambling or non-gambling. The risk is always the same for all KYC platforms.
We have seen a lot of data breaches from the exchange; it could happen with gambling as well. It would be misused for crime or something else. KYC means potential risk; we have to ignore it to avoid it where possible. There might be some good casinos who don't ask for KYC, and we should choose them.