It is a legal requirement for casinos to know their customers. So the KYC is chiefly there to try and prevent underage gambling and money laundering since online gambling involves large sums of money getting transacted at exceptional speeds. The International Monetary Fund (IMF) estimates that a staggering $1.5 trillion gets laundered yearly. That’s 5% of the global GDP! If customers fear they are betting alongside people using the industry to launder the proceeds of crime, they are likely to go elsewhere, hence the need for the KYC process.