I have a couple hundred dollars in Betdsi and asked for a payout via Bitcoin. They are asking for documentation proving my address but they have an old address on file and i don't have anything with that information on it. Do they really need that for a small Bitcoin payout or are they just trying to keep my money?
You won't be able to change their mind once they have asked.
But just tell them the truth and offer to supply whatever you can to verify it's really you and your current address and you should be fine. Rarely hear of anyone complaining about KYC there.