Twitch, owned by Amazon Inc., has announced it will ban it Crypto Gambling content will be implemented from October 18 next month.
Live broadcasting of slots, roulette and dice games is not permitted on websites such as Stake.com, Rollbit.com, and Duelbits.com.
The ban comes after a backlash over controversial crypto gambling livestreams in contrast to multi-million dollar sponsorship deals that many famous Twitch personalities have enjoyed.
These livestreaming gambling sites, such as Stake.com, Rollbit, and Duelbits.com, are not licensed in the United States or other jurisdictions responsible for providing consumer protection.
Stake.com, the most popular of these sites, is licensed in Curacao.
According to the tweet, Twitch noted that gambling content has been “a big topic of discussion” in the community and added,
While we prohibit sharing links or referral codes to all sites that include slots, roulette or dice games, we have seen some people violate those rules and potentially harm our community.
Sites not registered in the US will be banned
It noted that sites that are not licensed in the United States or other jurisdictions that provide adequate consumer protections should be prohibited from proceeding.
Other sites will also be identified in the future. However, platforms focused on sports betting, fantasy football and poker will not be banned.
Streamers also reported that they received over $1 million in sponsorships in a month from sites like Stake.com.
According to data from TwitchTracker, watching streamers play gambling has become extremely popular, even more popular than watching gamers play Fortnite on Twitch.
At any given time, at least 50,000 people are watching Twitch celebrities playing slots, blackjack and other games of chance, gambling with crypto like Bitcoin and Ethereum.
Both Twitch streamers and fans have stated their stance against gambling livestreams.
Concerns have grown over growing crypto gambling
The growing prominence of crypto-gambling content has stirred some immediate and major concerns. It has even led some users to lose substantial amounts of money and become addictive.
Famous Twitch users have even threatened to boycott the site until the crypto gambling issue is resolved.
Earlier in September, a streamer admitted to defrauding fans and other Twitch creators of nearly $200,000 to pay for a gambling addiction on Counter-Strike: Global Offensive.
Although it was not crypto related, crypto betting related crimes are also on the rise.
Not only famous Twitch users, but also regular users and fans have expressed disapproval of these gambling livestreams.
Some fans and users have also developed an addiction and are now hooked on crypto gambling after being inspired by their favorite streamers to participate in crypto gambling.