KYC is normal in Casino and Gambling addiction is also normal in gambling Industry.  It is studied that gambling addiction can be addressed by integrating Blockchain technology coupled with KYC to trigger an automatic self-exclusion program.

With the help of blockchain, casinos can temporarily block people who are so immersed in gambling and show signs of gambling addiction.  Since blockchain wallet is tied to the casino, the casino can create a temporary flag to the address and block it with certain time cooldown.

The challenge is that this method can be easily circumvented by creating a new wallet and play again due to anonymity.  It is said that this can be fixed by implementing KYC.  Blockchain plus KYC will identify the player even if the player creates multiple addresses.

What is good about this strategy is that blockchain record can be shared globally, so the tagged address can also be blocked by other casinos, preventing the person to deepen its gambling addiction by preventing them from indulging in online gambling.

Gambling addiction is induced by personal choice and external factors; but people tend to forget everything when they are drowning into gambling addiction, so I think the casino needs to step in by blocking the person's access to the platform, making self-exclusion automatic when signs of gambling addiction are seen.

What is your take on implementing a global temporary ban using Blockchain+KYC?

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Btw, blockchain is transparent and is able to know an address activities.  Casino have ways to know if a person is so immersed in gambling through their wallet address activity. It is best detailed on this article: What Crypto Gambling Teaches Us About On-Chain Behavior and Wallet Psychology