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.
I find self-exclusion concept something that even though it was created by the casino to fix gambling addiction, it is not something that the casino can do alone. It requires both parties to play a role. While your account is on hold, which is the role of the casino, your job/ role is to stay away from the casino. Block their URL so you don't have any means to access them. Don't just put the whole responsibility on the casino alone. Unless this is done from the end of the gambler, no other spohisticated strategy would work.
Of course, it's takes two to tango as the saying goes, the thing is that there are players are really insistent. Still trying to play even if they have put themselves into self-inclusion and when they were able to play again, blame the casinos.
So both parties should really agree on that part, if it 3 months or 6 months then the player should follow that, same with casinos. Blockchain has nothing to do with it, and let's admit it, we have seen multiple cases already, casinos are making profits from high risk gamblers that's why they might not want to implement a Re: Blockchain + KYC.