Cryptocurrencies have changed many industries around the world and are still dominating investment trends long after their appearance. One of the bigger industries in which cryptocurrencies are being used on a constant basis is online gambling.
More and more players are wagering with cryptocurrencies on online gambling sites and sports betting platforms. But recently, cryptocurrencies and numerous reputable bookmakers that accept payments in crypto have suffered a hit from Twitch.
This popular streaming service has banned the streaming of gambling sites, including sportsbooks that aren’t licensed. What this means is that the majority of sportsbooks that conduct payments in cryptocurrency will be prohibited from streaming on Twitch.
Why Is Twitch Banning Crypto Bookmakers?
A few months ago, Twitch announced that it would ban all controversial crypto gambling live streams, including crypto bookmakers, after backlash against recent sponsorship deals by top Twitch personalities worth multi-million dollars.
The popular live streaming service, which is owned by Amazon, is banning all crypto bookmakers and other online crypto gambling sites that aren’t licensed in the US or in any other jurisdiction that can provide sufficient customer protection.
Twitch also revealed in a statement that some of the most popular gambling sites were licensed in Curacao. This ban has been in effect since October 18th, and its purpose is to protect the fans from getting hooked on crypto gambling.
According to data collected from TwitchTracker, watching streamers gamble online is nearly as popular as watching gamers play games such as Fortnite on Twitch.
At any given time on this popular streaming service, there are over 50,000 people watching celebrities play casino games or placing sports bets on all kinds of sports, primarily using cryptocurrencies such as Bitcoin and Ethereum.
According to a Twitch streamer, there are influencers who are collecting $1 million a month from their sponsorship deals with popular betting sites. There are plenty of guidelines on how to get rich, but cryptocurrencies seem like the obvious choice for young people.
There are many fans who are simultaneously watching streams from cryptocurrency gamblers and gamers. This leads some fans to start betting on esports with cryptocurrencies, as they feel like they know what they are doing just by watching the streams.
Both fans and Twitch streamers have spoken against the live streams involving gambling, and some top Twitch personalities have even threatened to stop their live streams if Twitch doesn’t act on these issues.
Is This a Serious Loss for Crypto Traders?
Although Twitch is the biggest streaming service for gaming, it seems like the ban that has been imposed on crypto bookmakers won’t cause a lot of damage to the sports betting sites.
Crypto bookmakers aren’t fully dependent on Twitch streaming, as there are countless ways to promote this type of sports betting and gain many new bettors.
Anti-gambling advocates on Twitch have pointed out that the recent ban will only prevent the streaming of incompliant betting sites, implying that if a sports betting site is compliant with a territory, it can still be streamed on this popular streaming service.
They are also concerned that crypto gambling supporters will exploit loopholes in the language used in the featured ban and carry on as usual. This will be accomplished by simply not displaying the URLs of the sites in order to conceal the bookmakers’ websites.
Crypto bookmakers will also try to find ways to maintain a presence on Twitch, as a way to gain new potential bettors for their sites.
Some experts believe that popular streamers will find innovative ways to stream crypto betting sessions on Twitch. They also think that the streamers will maybe try to find other platforms where they can bring their fans and continue getting their big sponsorship deals from crypto bookmakers.
The popularity of both cryptocurrencies and sports betting will continue to increase in the years to come, regardless of the Twitch ban. As cryptocurrencies and blockchains are getting more recognition from different industries, many reputable bookmakers will also begin to accept them as a payment method.
Cryptogambling has been around for around a decade, and as things are shaping up, it will be around for many years. Since 2014, bettors have wagered over $4.5 billion in bitcoin at online gambling sites, which include sportsbooks, without taking modern cryptocurrencies into consideration.
According to these numbers, there are around 4,000 bettors that are using cryptocurrencies to place sports bets or to wager on online casino games. All of this indicates that crypto gambling will continue to thrive in the gaming world regardless of the Twitch ban.
Obviously, Twitch is trying to find a way to protect its fans from crypto gambling, but as things are shaping up, this will only be the beginning. Cryptocurrencies and sports betting are very closely linked, and they are becoming even more popular.
Bookmakers that accept cryptocurrencies have numerous ways to sponsor their betting services, regardless of the fact that Twitch is the biggest gaming streamer in the world.
They will try to find loopholes in the streaming platform, and they may even lure the popular streamers to find other streaming platforms where they can broadcast crypto gambling. If Twitch wants to end gambling streams on its platform, then they need to do a lot more on this topic.