You are totally right having concerns, that is badly explained and ill review it with the legal team ASAP, but what that intends to mean is that if there is a big suspicous activity being held we can ask for KYC for high value transactions not at withdrawal (is stated as so, because how the coding was done) but when the account starts having certains patterns. Thank you for your attention to this matter.
What you wrote can be interpreted in any way.
"big suspicious activity" - to me, it could be any activity.
"high-value transactions" - to me, $10 is high value - what? It can't be? How much it is for you?
"certain patterns" - what exactly is a certain pattern? Betting only on tennis? Or what?
Either you have deliberately created a trap for players, or you have no idea how to run a casino honestly.