Tbh that's probably why they're still around after 13 years while other casinos close or scam you..
No that is not true, strict kyc has nothing to do with this, and in beginning nobody enforced this rules in crypto casinos.
Sportsbet.io is a very good example, they are found around the same time as Cloudbet, they have fantastic relationship with bitcointalk community, and they don't have such strict kyc rules.