Rollbit And Stake Banned From Twitch

A quick look at Twitch's list of most watched content will certainly feature a long list of online casinos.

This overwhelming popularity of these platforms is largely explained by the prizes and bonuses available on their sites, such as the Rollbit coupon code, Duelbits 50% Rakeback, etc.

Despite these successful numbers, Twitch recently decided to ban Rollbit, Stake, and other online casinos from live streams. Read on to understand this controversial decision.

Twitch vs. Online Casinos - Understanding the Background

Currently, San-Francisco based Twitch runs the world's largest streaming platform dedicated to iGaming and fan-oriented content.

After a full report issued by Bloomberg denouncing that some cryptocurrency casino sites were paying millions of dollars to popular game streamers to promote their businesses, Twitch decided to ban several gambling-related contents from their streaming catalog.

The official note nominally cites that the ban will affect any content associated with sites such as Rollbit.com, Stake.com, Duelbits.com, and Roobet.com.

Using its Twitter account and other social media channels, the platform publicly announced on 20 September 2022, that it will ban live streams associated with gambling activities that include slots, roulette, or dice games that are not properly licensed in the United States.

On the other hand, the video platform will continue to allow users to stream from sports betting sites, fantasy games, and poker. The ban will be officially included in Twitch's terms of use update on October 18th.

Gambling sites like Stake.com, Rollbit.com, and Duelbits.com are not licensed in the US or other jurisdictions responsible for providing consumer protection.

For example, Stake.com, which is the most popular among these sites, is licensed in Curaçao. Many fraudsters, swindlers, and scammers rely on this well-known offshore to materialize strategies and tactics that lure potential victims into financial traps.

Is Twitch Actually Trying to Protect Consumers? - Taking a Closer Look

Twitch's announcement highlighted that sites without proper licenses under US regulations or other reputable jurisdictions that provide adequate consumer protection will be banned unrestrictedly.

The case only got worse as multiple streamers claimed that they got more than $1 million in monthly sponsorships from sites like Stake.com to promote their online casinos and attract users.

According to data from TwitchTracker, watching streamers wager on online casinos became an extremely popular activity. The numbers reveal that this hobby got even more popular than watching players playing Fortnite or major FPS leagues.

Are Crypto Casinos the Main Target of Twitch's Ban?

At any given time, it is not hard to find at least 50k users watching Twitch celebrities playing slot machines, blackjack, and other high-hazard games. The growing ease to access and wagering on online casinos is another concern behind the ban.

In the past, addicted gamblers would have to use credit cards or bank transfers to deposit funds into an online casino. Depending on the severity of the situation, a third party could intervene and prevent overwhelming financial damage.

With the rise of cryptocurrencies like Bitcoin (BTC) and Ethereum (ETH), most online casinos started to adopt virtual assets as their main payment methods for deposits and withdrawals.

Even though cryptocurrencies are regulated in different jurisdictions, these legal measures are not sufficient to prevent users from using them to gamble online. As crypto assets are decentralized, it is easy to spend and withdraw them with full anonymity.

Famous Twitch users even threatened to boycott the website until the crypto gambling controversy was resolved.

In early September 2022, a streamer admitted that he lured fans and other Twitch content creators to earn close to $200,000 to satisfy his addiction to CS:GO betting sites.

Final Thoughts

A recent decision announced by Twitch will update its service policy to restrict certain websites from streaming content on the platform.

From October 18, 2022, the website will completely ban activities from sites that offer roulette, slot machines, and other types of gambling. Still, streamers dedicated to sports betting sites, fantasy games, and poker will not be affected by the platform's new decision.

The growing prominence of gambling streamers being funded by online casinos has raised immediate concerns since these streamers led several users to considerable financial losses and gambling addiction.