This is not true at all. KYC is a huge issue in the crypto community and within this forum due to which gamblers complain literally everyday about it related to different sites and that is perfectly understandable.
We usually see complaints related to proof of address and source of funds verification. I have rarely seen complaints related to the normal identity verification process in Bitcointalk. I just checked the complaints related to Cloudbet on
Askgamblers, and couldn't find any complaints related to funds confiscation for the failure of KYC verification. Most of the forum members say that they don't like the KYC verification. But in reality, most of the gamblers complete the KYC verification when the casinos ask them to do it.
To be honest, this situation is forced upon users, because if they don't send KYC, they won't be able to make withdrawals, which makes me wonder why withdrawals with small amounts are processed more smoothly than withdrawals with large amounts.