Crypto-casino streaming has been banned by Twitch, but the platform still enables vast amounts of fiat currency gambling. The industry however should take care with promoting such high levels of gambling to young audiences, says Pavlos Sideris, director of Double Up Media. 

The decision by the streaming giant Twitch to ban gambling websites whose content includes “slots, roulette, or dice games that aren’t licensed either in the US or other jurisdictions that provide sufficient consumer protection” has been described as a clampdown on gambling-related streaming.    

It is true that the Amazon-owned group has, at a purely technical level, placed a ban on unlicensed gambling sites that stream players playing their online gambling products, but in reality it only refers to crypto-backed casinos, which make up so much of the casino content that is streamed. 

Twitch however hasn’t banned ‘traditional’ online casino, sports betting or poker operators and affiliates that are regulated in the US (or other major markets).   

This is no coincidence. It may be stating the obvious, but the reason Twitch decided to ban cryptocurrency-backed casino play from being streamed is because it is not regulated in the US and as a US company it doesn’t want to attract any more controversy than it already has when it comes to this issue. 

The fact that crypto-casino is also not regulated in the UK and other European markets also played a part, but the audience levels generated by casino streamers in the US are that much more significant, while many of the biggest (regulated) casino channels have marketing agreements with major US brands and are highly active on the platform.    

Streaming exposure

The lack of crypto regulation did not stop the large crypto brands such as Stake.com, Duelbits or Roobet from streaming online casino play and subsidising streamers with major sponsorship contracts to ensure they continue to broadcast to their thousands of followers. 

This has given them significant exposure and, one imagines, enabled them to recruit huge amounts of players. These customers will have watched the rap superstar Drake win $12m on a single roulette spin on Stake.com, having lost more than $800k betting on sports a few hours before, and will have been enticed to open accounts with those operators. 

In 2021 and as a nod to wanting to protect its audiences from too much gambling exposure, Twitch outlawed referral codes and affiliate links. The measure however will not have prevented thousands of consumers from easily finding the sites online; while the decision by some of the sites to not accept players from the US is easily circumvented by VPNs.

In fact, looking at its decision to ban crypto-casino streaming, one may wonder what has taken Twitch so long to adopt the measure. After all, crypto-backed casinos and sportsbooks have always been unregulated in the US, UK and other major markets.  

Of course, the reason Twitch did not ban them earlier is commercial. The streams by celebrities like Drake and sponsored players such as Mizkif, Trainwrecks or Niknam attracted huge audiences and that would have been the only metric Twitch paid attention to. 

Reputational concern 

Conversely, the most likely factor to influence Twitch into banning crypto casino sites will have been reputational. Cheating scandals or streamers fleecing players out of significant amounts of money to fund their gambling activities have created huge controversies and shone a most unflattering light on Twitch’s ready acceptance of crypto casino play.  

The site is owned by the e-commerce giant Amazon, which likely decided that the safest way to avoid further scandals is to ban crypto casinos outright.

The other obvious point to make is that Twitch on the whole appeals to much younger demographics than those that might play on ‘regular’ slot sites. The company’s advertising and media information says “nearly 75% of Twitch viewers are between the ages of 16 and 34”.

The idea that thousands of young Twitch watchers might have been led into opening accounts on sites that were (and still are) unregulated and where they may have spent huge amounts of money while potentially developing gambling problems would be enough to give any public affairs or compliance executive significant worries. 

No gambling ban

In an echo of the point made at the start of this article, campaigners and industry observers have been quick to point out that the new measure by Twitch “isn’t an outright ban on gambling” but just “a blow to crypto casinos”. 

Indeed, what some campaigners want is a complete ban on the streaming of online slots and other casino games on Twitch, because, they say, “it is objectively harmful to the website and its users” and Twitch’s ban on unregulated operators still means that “luck-based gambling will still be alive and well on the website on October 18th” when the ban on crypto casinos comes in. 

A ban is unlikely to happen in the near or medium term at least and a quick scan of the ‘Slots’ homepage on Twitch shows that the crypto casino channels have now been replaced by more ‘traditional’ ones.

In addition, with competing streaming platforms such as DLive more than willing to accept crypto (or other) casino streamers, it seems unlikely that Twitch will broaden its ban to ‘traditional’ casino channels.     

Mass availability 

Twitch’s rise as a showcase for online slots and other casino games has been steady and long trailed over the past few years. 

What the platform also shows is that live casino continues to evolve. From its original and current incarnation as a product aimed mainly at VIPs and ‘whales’ on regular casino websites,  to one that, thanks to Twitch, is becoming more focused on online slots and has been made available to a much broader and younger section of the population.

Without wanting to be too alarmist, the fact that younger demographics are exposed to gambling products much earlier than might have been the case in the past should be a cause for concern for all of us as stakeholders. 

There have already been a number of addiction or problem gambling stories of young players who became familiar with gambling through Twitch. Criticising the industry for not intervening earlier will be of no use if all gambling streaming eventually gets banned on Twitch.