AFAIK, KYC is not required for a small amount of withdrawal. Just like exchanges, some required basic KYC for more than $100, 1BTC, etc., it depends on the service's jurisdiction. Also, KYC is not related to the trustworthiness of a casino. It's a different matter.
As long as users don't have a problem with deposit/withdrawal, users can assume that the site is safe to play (to certain extents).
KYC is kind of local rule, whenever people join new place (forum, exchange, casino), they have to read rules, accept them before creating accounts and starting to use their accounts on those places. KYCs is not too bad, but if someone don't want to do this, just ignore platforms require KYCs, and choose others that don't require KYCs. However, I believe that it is just a matter of time, and later all platforms in crypto will require KYCs, when local governments step in. Issues only are serious issues if platforms change their TOS, and ask for KYCs, without timegaps to allow their customers to withdraw money out of their platforms if they don't want to do KYCs.
