Gambling Streams Still Alive on Twitch despite Ban
Despite Twitch's alleged ban on skin gambling sponsorships, a recent investigation by Barron's has brought to light that the practice persists on the platform. Twitch decided to distance itself from gambling content last year following backlash by some content creators, but apparently hasn't fulfilled its promise.
The Twitch icon on a laptop computer and mobile phone. (Source: Getty Images)
LISTEN TO THIS ARTICLE:The report, which spanned six months, identified over a hundred CS2 Twitch streamers who continue to receive sponsorships from skin gambling sites. This revelation raises questions about the enforcement of Twitch's advertising policies and the platform's commitment to curbing gambling content.
The issue of gambling streams on Twitch is not new, but the persistence of such content, especially in the form of skin gambling, is alarming. Skin gambling involves trading virtual goods, typically from video games, which can have real-world monetary value, for the chance to win more valuable items. Twitch's policy prohibits the sharing of links or referral codes to gambling sites, yet Barron's investigation suggests that these rules are being circumvented.
Advertising from gambling sites on Twitch is not limited to partnerships with streamers. According to Barron's, some gambling entities have also taken to purchasing ads directly on the platform.
Barron's outreach to high-profile Twitch streamers revealed that the offers for promoting gambling are substantial, with figures reaching up to $200,000 a month. These numbers are comparable to, if not exceeding, the amounts reported during the early days of skin gambling's rise to prominence. The lucrative nature of these offers presents a significant temptation for content creators, potentially at the expense of their audience's well-being.
This practice extends beyond Twitch, with similar advertisements found on Google and YouTube, both of which have policies against digital gambling advertising. The involvement of these major platforms indicates a broader issue within the digital advertising ecosystem regarding gambling content.
The response from the tech giants to Barron's findings has been tepid. Twitch's statement about "looking into" the assertions suggests a lack of immediate action. This response, or lack thereof, could be seen as indicative of the challenges platforms face in regulating advertising content, particularly when it involves a complex and often international network of gambling operations.
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Twitch Could Face the Heat
The potential consequences for Twitch in the wake of Barron's report on gambling streams could be multifaceted and significant. Firstly, there is the risk of reputational damage. As a platform that has publicly set rules against such sponsorships, the continued presence of skin gambling streams could erode trust among users and advertisers, potentially leading to a loss of revenue. Twitch's perceived inaction or ineffective enforcement of its own policies might prompt streamers and viewers to move to other platforms, seeking a more regulated environment.
Secondly, Twitch could face legal scrutiny. If the platform is found to be complicit or negligent in enforcing its policies against gambling content, it may attract the attention of regulatory bodies. This could result in fines or sanctions, and in extreme cases, could even lead to litigation. The legal implications extend beyond the US as Twitch is a global platform, and different countries have varying regulations regarding online gambling.
Moreover, there is the possibility of increased regulatory pressure. Governments and regulatory authorities around the world are already scrutinizing the role of technology companies in various societal issues. The findings of Barron's report could lead to more stringent regulations on digital platforms regarding gambling content, which could force Twitch to overhaul its content moderation strategies.
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