Twitch is about to ban gambling. How will it impact crypto?

Without proper licensing in the United States or «other countries that offer appropriate consumer protection,» Amazon's live streaming platform Twitch will not enable streams from gambling companies. Livestreaming gambling sites that «aren't regulated either in the US or other countries that offer proper consumer protection,» as Twitch put it in a Twitter post, will be banned. This includes sites like Stake.com, Rollbit, and Duelbits.com. The most well-known of these sites is Stake.com, which has a Curacao license. Starting on October 18th, the prohibition will be in force.

Top broadcasters on the network vowed to cease using Twitch unless the policy was changed to allow broadcasts with gambling content.

A representative from Twitch did not immediately provide a reaction. For a long time, the presence of gambling on the platform has been a source of contention, with both streamers and users criticizing the corporation for failing to rein in popular gaming categories that might have negative impacts on users, especially young ones. In this article, we’ll provide you with information on how Twitch’s upcoming ban is going to impact crypto. 

The influence on the digital assets

Twitch was one of the main and significant platforms for gamblers, where there were many crypto gambling streams and lots of creators. More than a quarter of all digital asset owners in 2021 utilized cryptos for iGaming, according to statistics. From what we can see, internet gaming and gambling have been on the upswing in recent years. Furthermore, by 2027, it predicts an even bigger boom in the gaming industry, with revenues perhaps reaching $340 billion. As this means that the iGaming industry and crypto are significantly linked, the ban announcement of Twitch might have an effect on the value of digital assets.

Even though youtube still allows its customers to stream gambling that is linked to cryptocurrencies, analysts think that changes might come and these processes might give birth to a new decentralized streaming platform, as there will clearly be a need since the market of crypto casinos is huge. As a result of the increasing number of online crypto casinos, online gamblers might struggle to choose the best casino for them. However, online gambling enthusiasts can visit the website of bitcoincasinoreviews, which provides gamblers with a myriad of information about gambling companies. For example, on a crypto casino review website we can find JustBit review, which provides casino gambling lovers with information on the legality of the casino and which digital currencies are accepted as a payment method. Based on the website, gamblers can find which crypto casino can be the most suitable for them

Since May 2022 crypto crash, digital assets are in a very bad condition, which means that their value becomes quite fluctuating and volatile, for example, the leader of the marketplace at the moment of writing is estimated at USD 18,938.50. This price level shows a decrease of more than 50% in the past 6 months. As BTC prices often define the value of other cryptos, this means that other cryptocurrencies aren’t doing quite well. The upcoming ban announced by Twitch might significantly affect and damage the crypto market.

More about the Twitch ban

As BBC reports, the addict recently admitted that he had been swindling his fellow streamers for years, claiming he needed money to «borrow» to pay bills or fix his bank difficulties when, in fact, he was just gambling away the money he had stolen from them. Sliker may have «borrowed» up to $300,000 in cash and never repaid any of it, according to speculation.

«I made a bad decision when I lent Sliker $27,000. At the beginning of the week, lukeafkfan, another influential person, said, „I thought I could trust him and I suppose I simply couldn't.“ The streamer continued by describing his humiliation and pain at having been duped by Sliker.

According to Bloomberg, Twitch has said that it is investigating the rise in popularity of „crypto casinos“ as a means of entertainment and the subsequent rise in the prevalence of gambling addiction among its users.

The popularity of crypto-based gambling in other game-streaming environments, including YouTube, is on the rise as well. Facebook Gaming, along with other, smaller streaming services, is involved and actively seeking a fix.

“Since our previous policy change in this area, gambling material on Twitch has been a prominent subject of conversation in the community,» the statement continued. We've seen individuals get around our regulations and put the community at risk by posting links or referral codes to sites that host slot machines, roulette, and dice games.

Streamers are already prohibited by Twitch's existing community standards from providing affiliate links or referral codes to sites that offer slot machines, roulette, or dice games to their viewers.