The past few months have not been easy for the crypto industry.
The list of headaches plaguing the fledgling industry grows by the day: falling prices, rampant scams, bankruptcy filings at prominent lenders and platforms, ominous pronouncements from regulators proposing tougher rules, caution on the part of institutional investors, and exits by millions from retail investors who ‘I’ve lost money and faith.
Now add to this list a major setback suffered by a growing segment of the crypto-sphere: gambling. Twitter, Amazon (AMZN) Live streaming platform, just decided to ban some of the most famous live streaming gambling sites.
Stake.com, Rollbit.com, Duelbits.com and Roobet.com posing as crypto casinos and crypto and NFT gambling and betting sites will no longer be allowed on Twitch.
The ban could be extended to others
That ban comes into effect on October 18, Twitch said in a statement posted to Twitter on September 20.
“Although we prohibit sharing links or referral codes to any site that contains slots, roulette or craps, we have seen some people circumvent these rules and expose our community to potential harm,” the platform said.
“So on October 18, we will be making a policy update to prohibit streaming from gambling sites that contain slots, roulette or craps games that are not licensed in the United States or other jurisdictions that offer adequate consumer protections,” the company said continued.
It added: “These sites include Stake.com, Rollbit.con, Duelbits.con and Roobet.com. However, we may identify more as we go along.”
The announcement comes after several days of mobilization by users, including celebrity streamers, who generally denounced gambling being allowed on the platform.
But the latest grumblings have been fueled by the fact that one of the streamers appears to have stolen large sums of money from others for his gambling addiction.
It all started with a stream from ItsSliker, a UK-based streamer with over 430,000 subscribers. ItsSliker, which gained popularity in 2019, most often plays gambling games like Valorant and Counter-Strike Global Offensive.
He is accused of tricking Twitch viewers and other influencers into lending him large sums of money.
ItsSliker claimed his bank account was frozen and he needs help while the account was frozen.
Crypto gambling on the rise
He recently said in a video that he was addicted to gambling and had borrowed hundreds of thousands of dollars from other creators to fund his sports betting.
The hashtag #TwitchStopGambling has been circulating on social media for the past few days.
As the situation unfolded, influential Twitch figures including Pokimane, Devin Nash, Mizkif, Ludwig and Hasan Piker called on the company to ban gambling on the platform, and some threatened a week-long boycott in protest.
Thousands of people watch as more influencers and celebrities compete on Twitch through slots, blackjack and other gambling games by betting cryptocurrencies. According to Bloomberg, Stake.com sponsors top influencers by paying them $1 million a month.
The popularity of gambling with bitcoin, ether and other coins is increasing on Twitch and is among the top tiers of popular categories.