It is very difficult to make a suggestion or take things as true based on the opinion of one person. What is a good casino for one person may be a lot less good for another. And we often see that a casino is portrayed as a scam, while a week later you see that it has been resolved.
It seems like a lot of people think that KYC itself is a scam, regardless of the casino's legitimacy to withhold funds when the wrong details were provided.
On one hand, I understand this perspective. Casinos often accept registrations and even deposits without requesting documents, but then withhold winnings before those can be verified. Customers that have already deposited and won obviously feel cheated.
On the other hand, casinos holding licenses (even less-demanding licenses such as the Curaçao one, which seems likely to get stricter -
https://casinosblockchain.io/new-gambling-regulator-curacao/) are required to do so. As someone who's worked on the casino-side a few years ago, I can tell you first-hand that game providers themselves like NetEnt and Microgaming also pressure the casinos to do it for their own legal protection.
All in all, I think in many cases, 'funds withheld' scams can be avoided with proper information. The casinos themselves should definitely make an effort to disclose that information, of course (maybe even request KYC before deposits).
Personally, I think the best option for a casino that has to do KYC is forcing it right after registration. Then, playing straight from e-wallets for crypto users, meaning no need for 'deposits and withdrawals'. That way, nobody gets hurt.
However, like many here have said,
players should research the casinos before committing their Bitcoin.
Reading threads like this help, but I think searching for other sources of information is important as well, like comparison websites.
As long as they're well-researched, those pages can tell you if things like KYC are required, so you're not in for an unpleasant surprise.
https://casinosblockchain.io/bitstarz-review/
On that note, sites like those can really benefit from user reviews!