The resurgence in the popularity of CS:GO resulted in an increased number of crate opening and skin gambling streams. Concerns over unregulated gambling and unsanctioned promotions have forced Twitch to enforce another gambling ad ban.
Twitch caused a stir online a few months ago when it appeared to have passed a blanket ban on live-streaming instant slots and other casino games.
A new competitor stepped in to fill the void in response to the streaming giant's decision. The co-founders of the famous crypto-friendly Stake Casino, Bijan Tehrani and Ed Craven, launched a casino-friendly live-streaming platform, Kick.com.
To stem the flow of streamers to their competitor, CEO Dan Clancy went online to clarify that Twitch welcomes gambling streams but only if the promoted casinos are licensed and the streamer is legally allowed to gamble where they live.
YouTuber Kicks the Hornets’ Nest
Just when Twitch thought it had put the gambling controversy in its rearview mirror, a popular Counter-Strike: Global Offensive (CS:GO) player and YouTuber who goes by the pseudonym Houngoungagne released a video entitled “The Dark Reality behind CSGO. (Illegal Gambling, Lies and Addiction)”.
What many non-gamers might need to learn is that weapon and glove skins in CS:GO, have a real money value based on several factors, which include rarity, sticker packs and whether it was randomly assigned a factory new or well-used status in-game.
In addition to the actual monetary value of these digital products, they are obtained by purchasing "crates", which contain a random prize. You must also buy keys to unlock these mystery boxes to win an in-game skin. The triggers and mechanics are clearly the same as those we know from online slots.
Houngoungagne’s whistle-blower video does a deep dive into the seedy underbelly of online skin gambling. It highlights the fact that despite all the arguments to the contrary, pulling CS:GO skins and the sites that accept them as collateral for real money wagers are acting as unlicensed and unregulated online gambling sites.
Twitch’s Hand is Forced
The video was so well-researched and detailed that after a few days, Twitch had no other choice but to make a public statement clarifying its position. As expected, the streaming platform took the easy way out. It announced yet another sitewide ban on all skin gambling sponsorship, affiliate links, and any material deemed to be promoting sites that accept gaming skins for gambling.
With some of these sponsorship netting the streamer more than €120,000 per month, this will be a devastating loss of income. Rather than finding ways to ensure that legal gambling continues while unregulated operators are blocked, they shut it all down.
This action has caused a resurgence in streamers moving to Kick, which offers a very competitive compensation program and allows streamers to promote gambling sites while allowing viewers to self-exclude from seeing gambling content.
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