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.
Using blockchain and KYC in the sentence even sound like a contradiction because part of the reason for blockchain is to improve privacy and avoid censorship.
This is only a half-truth about blockchain tech, blockchain tech is also used for transparency and tamperproof recording, which can be a great help if used. As we all know, blockchain tech can't be fully used in the real world without following regulations, which is normal in a regulated industry.
Gambling addiction cannot be reduced through KYC; having my biodata will not mean that the casinos knows what is going on with me. So I don't agree with your hypothesis because it's only an addicted gambler that can tell you that they are addicted.
Who said KYC will solve gambling addiction? Never underestimate the psychology of betting patterns, which can be seen through on-chain gambling activities. Oh btw, even an addicted gambler can't tell that they are addicted, but their gambling activities and patterns do.