Don't give them ideas...
Quite, when this holding up the ID in a photo thing first appeared, I said it was a good idea if the alternative was asking the player's Doctor for a "doctor's note" that the ID was real, and sending this in, or even worse, getting your bank or the police to sign it (which they don't do anyway). All of this has been asked of players, and holding up the ID in a photo, while a pain in the ass, is a whole lot better than going round looking for a doctor, bank manager, policeman, etc to sign a copy for you before being able to send it off.
DNA could be the next step, every one has to send it in for their first cash-out, and it would be checked to make sure it doesn't match any one else's DNA on file (multiple accounts).
I am sure there will come a stage where the ridiculous becomes routine, and eventually this will kill the industry, because new players will think it too intrusive, given all the fraud that takes place when the "wrong people" get hold of your personal information.
A couple of years ago, asking for "notarized copies" was almost unheard of, and the Rival rep said it was "rare" (around 1 or 2). Now it seems pretty standard for Rival to ask for something more than the standard ID + Utility bill.
Either there has been a burst of fraud attempts, or Rival have gone a little paranoid, and think EVERYONE is trying to screw them over.
Maybe, the fact you won so much from a 100 deposit is enough, which might make people think the games were not supposed to pay that much, and that you were "up to something", so you have been elevated to "high risk", and need to be looked at more thoroughly.