With the new rules against online casino gaming and online gambling, many sites and platforms have been on the fence with said types of games. And if you thought Twitch was going to take a hands-off approach to gambling, it would look like your assumption is incorrect. In a decision that could have big implications for online gamers and esports fans alike, Twitch has banned cryptocurrency-based casinos from its platform, even if it is from reliable online sites like bk8 thailand.
The move is surprising on the surface since the company recently signed an agreement with the popular crypto exchange platform named Binance, which gave Twitch access to millions of dollars worth of bitcoin in order to fund new initiatives. But there are also other factors at play here. The ban has been described as “proactive” and “aggressive,” but we’re still waiting for more details about exactly what prompted the decision.
Still, it’s important to keep some perspective in this case. Twitch isn’t just banning casinos outright — they are only blocking users who offer their services via cryptocurrencies. That means anyone who wants to bet using any method — including fiat currency or traditional banking methods — can still do so. And even if the ban does apply to everyone, it’s unlikely to shut down the majority of these operations at the first phase or at least, initially. After all, most people are likely still unaware of this news. So while it might hurt the short term, it’ll be months before this new policy has much of an impact.
What Is Twitch’s New Policy?
On the Wednesday evening, Twitch issued a statement regarding the ongoing debate surrounding cryptocurrencies. Among other things, the company said that it will not allow users to provide odds for casino games through cryptocurrencies. This includes betting odds, skins bets, or any other type of wagering on video content.
“We’ve always taken a strong stance against third party operators creating a financial incentive around our content,” reads the announcement. “That’s why we created our own betting partner program that allows us to vet partners and ensure they comply with our policies.”
Cryptocurrency gambling platforms are already operating on Twitch; however, many of them don’t actually use the method of blockchain to verify transactions. Instead, they rely on centralized exchanges to handle everything. This makes it easier to track activity, but it also leaves room for fraud.
“Any operator offering odds or betting on our platform must use our official betting partner system, which provides transparency into every transaction,” continues Twitch. “This gives us the ability to prevent abuse and protect our community from fraudulent operators.”
For example, earlier this year Twitch became aware of a scam involving a fake Twitch Prime gift card. To make matters worse, this scamster was able to withdraw over $2 million USD worth of crypto before getting caught. At least one of the victims filed a lawsuit against Twitch and others involved in the scheme.
So yes, Twitch is well aware that these types of scams exist. It knows that using cryptocurrencies makes it easier to get away with such crimes. But that doesn’t mean that the company should completely abandon them altogether.
It’s Important to Keep Perspective
As I mentioned above, Twitch isn’t shutting down casinos entirely. Users who want to place bets with fiat currencies or traditional bank accounts are still free to do so. The company is merely preventing those who prefer to use cryptocurrencies from doing so.
That being said, it’s hard to see how this decision benefits anyone besides the company itself. Cryptocurrencies haven’t been particularly popular lately, meaning fewer people are looking to gamble with them. Even if Twitch were able to find a way to profit off of this ban, it would probably still be a bad business decision.
There are plenty of other ways for Twitch to generate revenue right now. It can’t just sit back and hope that more people start buying expensive hats. If anything, this policy seems more like a desperate attempt to hold onto its current audience.
But even if that is true, Twitch shouldn’t worry too much. There aren’t many alternatives when it comes to gaming on the internet. Sure, YouTube Gaming has started to grow, but it hasn’t become a mainstream destination just yet. In fact, Twitch just signed a deal with Disney which will give the streaming channel access to billions of dollars worth of content.
Sure, it would be nice to see Twitch create new revenue streams beyond ads and subscriptions. But this is just a matter of time. Right now, the company is still trying to figure out how to best monetize its existing userbase. While Twitch may eventually decide to pull the plug on cryptocurrency-based casinos, the company won’t be giving up anytime soon.
Are You Upset About Twitch Banning Crypto Casinos?
I’m sure many readers are upset by this news. But let me ask you something: What else could Twitch do? As I mentioned above, the company doesn’t seem interested in completely abandoning cryptocurrency gambling. So instead, it’s decided to limit the number of options available.
It’s understandable that this decision might hurt some people. But it’s important to understand that Twitch isn’t making this decision because it cares about the people who use its platform. Instead, this is just another step in the company’s efforts to maximize profits.
And that’s fine. Most of the time, Twitch makes money from the people who watch its videos. Some viewers spend hundreds of dollars each month on premium membership plans. Others buy tons of merch and t-shirts. Still others pay monthly subscription fees.
In other words, Twitch needs to attract as many eyeballs as possible. And the easiest way to do that is by providing value to the people who pay attention to the site. That means making it easy for people to watch and interact with live events. It also means adding features like chat rooms. And it means offering perks to viewers who spend lots of time watching videos on the site. And it means allowing users to earn rewards based on how long they spend watching videos.
Sure, Twitch isn’t perfect. It sometimes falls victim to controversy. Its parent company is notoriously secretive about how it makes money. And there’s no reason to believe that the company isn’t taking a cut whenever someone buys a hat or subscribes to a premium tier.
But for now, the company appears to be focused on maximizing its revenue. And that means taking advantage of whatever avenues available to it. And the ban on cryptocurrency-based casinos is just one step along the road.