The Rise and Risk of Crypto Gambling on Twitch
As the seventh most popular category of streams on Twitch, cryptogambling has taken the cyber world by storm, which is not necessarily a positive thing. Every computer, tablet or smartphone can now be used as a gambling device by people of all ages. Although the origins of gambling are unknown, it has been practiced for centuries in China. Until 1638, when the first public legal casino, The Ridotto, was built in Italy. Back then, no one would have dared to imagine that technology would be able to place a casino in the hands of anyone, anywhere, anytime.
Thousands of Twitch streamers regularly broadcast their cryptogambling activities to an open audience. However, many of these streamers are reported to have been paid by casinos to create such content. Popular streamers like Tyler Niknam, better known as Trainwreckstv, who currently has 2.1 million followers on Twitch, are heavily sponsored by online casinos, such as Stake.com. Even high-profile celebrities like Drake have started to engage in crypto gambling on the streaming service.
This sounds great, right? Streamers make money from sponsors, and subscribers are entertained. It’s a win-win!
Well, not so fast. Bloomberg reports, “at any given time, over 50,000 people watch Twitch celebrities play slots, blackjack and other games of chance, primarily gambling with cryptocurrencies such as Ether and Bitcoin.” This means that over 50,000 people from all over the world – of all ages – are almost constantly exposed to gambling. Practical, right?
But is it safe to broadcast crypto gambling to an unsuspecting audience? It doesn’t seem that way. Well-known Twitch streamers sponsored by these online casinos can therefore negatively affect their viewers as they can entice them to engage in crypto-gambling themselves. Some viewers found themselves repeatedly betting on cryptogambling sites, following streams from their Twitch role models. Many times, Twitch streamers even provide promo codes to encourage viewers to enter the world of cryptogambling, leaving them wanting more and more. The volatility of cryptocurrency, combined with the risks associated with online gambling, form a dangerous combination that leaves crypto gamblers vulnerable to losing thousands or even millions of dollars in a matter of minutes.
Recently, however, Twitch has announced that the streaming service will ban slot machines, roulette and dice, including Rollbit, Duelbits.com and Stake.com that “are not licensed either in the United States or other jurisdictions that provide adequate consumer protection.” The ban will take effect on October 18, 2022. According to CNBC, this policy change comes “after some of the platform’s top streamers threatened to stop using the platform if Twitch did not change its policy on gambling streams.” Frankly, I think this ban is limited in its effectiveness.
So can we deduce that gambling in traditional casinos may involve less risk than cryptogambling? Yes, we can definitely see gambling in casinos as a lesser evil because there is less room for fraud when you receive your winnings immediately. Traditional gambling also limits gambling to the casino, which is only available to legal adults.
Broadcasting crypto gambling to an open audience is very unsafe as viewers, especially minors, have easy access to it. Crypto gambling is a very risky venture that I would not recommend anyone to do because of the volatility of cryptocurrency and the high probability of incurring losses that should not be approved by anyone.
