Are you sure it's the fault of the government or just a scam in place here? First they gave you a bonus for just signing up, juicy bait. Then they asked you to deposit. Once you deposited and made money, and asked for a withdrawal, things changed. Then they asked for KYC. After KYC, they refused to let you withdraw your money.
That is a scam system at play there. If you had filed a lawsuit and the government didn't respond, then you can accuse the government.
Funny enough, if the casino claimed the account was compromised, why didn't they flag it earlier? You sent your picture and they still denied your withdrawal. You've been scammed.
The point is that the government actually allowed this site to operate. Instead of being competitive and offering more advantages to players, they're creating a negative reputation for themselves. Furthermore, they understand perfectly well that a player is unlikely to sue them, as a good lawyer who can properly draft a case would cost more than the deposit made to the site.The most a grok can do is not recommend this service.