Although there are many oppositionss with the idea, I think the idea itself is good enough to improve gambling exclusion in preventing problem gambling. I can see the concerns since many member of the forum is not KYC friendly, they tend to minimize the power of blockchain and strict KYC implementation.
I also believe high rollers can still practice their normal gambling pattern, since KYC will prove that they have the funds and the source of funds to back their spending. We may have thought that the government is not interested in these changes, but I feel that we are only discussing the effect of implementations of Blockchain + KYC in helping gamblers avoid gambling addiction.
I am thinking that with the power of blockchain and KYC attached to the address, it is a powerful tool to identify every gambler. I also think the same as what @cryptoaddictchie stated.
In my opinion, uing Blockchain + KYC for self-exclusion is a strong idea because it combines transparency with identity verification. Blockchain alone can flag addictive gambling behavior, but players can bypass it by creating new wallets. With KYC, casinos can link activity to a verified identity, making it harder to evade restrictions. This is typically efficient whereas a global system where flagged addresses or identities are recognized across platforms could truly reduce problem gambling.
Although the on-chain analysis is not 100% accurate but the psychology behind the betting pattern of every gambler won't lie. I'd rather make a slight miscalculation than let a gambler get into a gambling problem. Besides, it was stated that the exclusion is just temporary, like pouring water on a burning desire to gamble with an emotion of revenge gambling/chase winnings.