Apps

Twitch responds to gambling scam drama by banning some betting sites

Comment

twitch glitch
Image Credits: Bryce Durbin/TechCrunch

Twitch is cracking down on some gambling sites after a streamer scammed his peers out of tens of thousands of dollars to fuel a betting habit, kicking off a firestorm about how the platform should handle games of chance in the process.

Over the weekend, ItsSliker, a U.K.-based streamer who gained some popularity back in 2019 after appearing on game show streams, was accused of misleading Twitch figures into loaning him big sums of cash. According to Discord logs linked on a Reddit thread, ItsSliker claimed that his bank account was locked and he needed help while the account was frozen.

A number of big-name streamers came forward with similar stories about being contacted to help ItsSliker with his financial need under similar circumstances, including Ludwig Ahgren, Mizkif, Lukeafkfan and Trainwreck, who said he once gave the lesser-known streamer a payment of about $45,000. Twitch’s most-watched streamer of 2021, xQc, vowed to help repay the money lost, estimating the total at around $300,000.

ItsSliker came clean about his gambling problem in a video over the weekend, admitting that he has a gambling addiction and explaining that it all started with making bets using in-game skins in the now decade-old game Counter-Strike: Global Offensive. After that, he “started to gamble with money,” moving on to sports betting.

“I’d come across streamers and ask them if I could borrow money,” he said. “And obviously I wouldn’t give them the reason, because it was gambling — I would lie to them.”

As the scandal spread, influential Twitch figures — including Pokimane, Devin Nash, Mizkif, Ludwig and Hasan Piker — called on the company to ban gambling on the platform, with some threatening to boycott Twitch for a week or longer in protest.

Twitch responded to the situation — and the threat from some of its biggest streamers — on Tuesday, saying that it would issue a policy update next month to prohibit “slots, roulette, or dice games” that aren’t licensed in the U.S or other markets with robust consumer protections. The new partial action against gambling streams would block sites like crypto betting hub Stake.com, Rollbit.com, Roobet.com and Duelbits.com.

Twitch noted that it would continue to “allow websites that focus on sports betting, fantasy sports, and poker,” leaving plenty of room on the platform for some of the most popular forms of betting.

Some streamers were happy to notch a win against gambling, which they don’t believe has a place on Twitch. Others were quick to point out that the company’s half measure wouldn’t do anything to impact the scam that kicked off the conversation to begin with.

Trainwreck, one of the streamers who fell victim to ItsSliker’s scam, objected to the broad anti-gambling sentiment while raising awareness about adjacent predatory behavior, like Twitch streamers who lure people to sign up for betting sites in order to win on-stream giveaways or those who only show wins without depicting the reality of their betting losses.

As the scandal unfolded, an inevitable backlash to the backlash fairly pointed out that Twitch stars swiftly rallied a pressure campaign against gambling in spite of failing to organize against other serious, systemic issues that still plague the platform, including harassment and hate speech targeting marginalized streamers.

Whether you think gambling has a place on Twitch or not, the conversation that launched out of some interpersonal drama between streamers is getting pretty muddled. Twitch might please some of its biggest names with a promise to ditch a few gambling domains, but ultimately there’s not a lot platforms can do when it comes to scammers using good old-fashioned social engineering to manipulate the people around them.

VTubers are making millions on YouTube and Twitch

Twitch builds toward a ‘layered’ safety approach with new moderator tools

 

More TechCrunch

Silo, a Bay Area food supply chain startup, has hit a rough patch. TechCrunch has learned that the company on Tuesday laid off roughly 30% of its staff, or north…

Food supply chain software maker Silo lays off ~30% of staff amid M&A discussions

Featured Article

Meta’s new AI council is composed entirely of white men

Meanwhile, women and people of color are disproportionately impacted by irresponsible AI.

5 hours ago
Meta’s new AI council is composed entirely of white men

If you’ve ever wanted to apply to Y Combinator, here’s some inside scoop on how the iconic accelerator goes about choosing companies.

Garry Tan has revealed his ‘secret sauce’ for getting into Y Combinator

Indian ride-hailing startup BluSmart has started operating in Dubai, TechCrunch has exclusively learned and confirmed with its executive. The move to Dubai, which has been rumored for months, could help…

India’s BluSmart is testing its ride-hailing service in Dubai

Under the envisioned framework, both candidate and issue ads would be required to include an on-air and filed disclosure that AI-generated content was used.

FCC proposes all AI-generated content in political ads must be disclosed

Want to make a founder’s day, week, month, and possibly career? Refer them to Startup Battlefield 200 at Disrupt 2024! Applications close June 10 at 11:59 p.m. PT. TechCrunch’s Startup…

Refer a founder to Startup Battlefield 200 at Disrupt 2024

Social networking startup and X competitor Bluesky is officially launching DMs (direct messages), the company announced on Wednesday. Later, Bluesky plans to “fully support end-to-end encrypted messaging down the line,”…

Bluesky now has DMs

The perception in Silicon Valley is that every investor would love to be in business with Peter Thiel. But the venture capital fundraising environment has become so difficult that even…

Peter Thiel-founded Valar Ventures raised a $300 million fund, half the size of its last one

Featured Article

Spyware found on US hotel check-in computers

Several hotel check-in computers are running a remote access app, which is leaking screenshots of guest information to the internet.

9 hours ago
Spyware found on US hotel check-in computers

Gavet has had a rocky tenure at Techstars and her leadership was the subject of much controversy.

Techstars CEO Maëlle Gavet is out

The struggle isn’t universal, however.

Connected fitness is adrift post-pandemic

Featured Article

A comprehensive list of 2024 tech layoffs

The tech layoff wave is still going strong in 2024. Following significant workforce reductions in 2022 and 2023, this year has already seen 60,000 job cuts across 254 companies, according to independent layoffs tracker Layoffs.fyi. Companies like Tesla, Amazon, Google, TikTok, Snap and Microsoft have conducted sizable layoffs in the first months of 2024. Smaller-sized…

10 hours ago
A comprehensive list of 2024 tech layoffs

HoundDog actually looks at the code a developer is writing, using both traditional pattern matching and large language models to find potential issues.

HoundDog.ai helps developers prevent personal information from leaking

The changes are designed to enhance the consumer experience of using Google Pay and make it a more competitive option against other payment methods.

Google Pay will now display card perks, BNPL options and more

Few figures in the tech industry have earned the storied reputation of Vinod Khosla, founder and partner at Khosla Ventures. For over 40 years, he has been at the center…

Vinod Khosla is coming to Disrupt to discuss how AI might change the future

AI has already started replacing voice agents’ jobs. Now, companies are exploring ways to replace the existing computer-generated voice models with synthetic versions of human voices. Truecaller, the widely known…

Truecaller partners with Microsoft to let its AI respond to calls in your own voice

Meta is updating its Ray-Ban smart glasses with new hands-free functionality, the company announced on Wednesday. Most notably, users can now share an image from their smart glasses directly to…

Meta’s Ray-Ban smart glasses now let you share images directly to your Instagram Story

Spotify launched its own font, the company announced on Wednesday. The music streaming service hopes that its new typeface, “Spotify Mix,” will help Spotify distinguish its own unique visual identity. …

Why Spotify is launching its own font, Spotify Mix

In 2008, Marty Kagan, who’d previously worked at Cisco and Akamai, co-founded Cedexis, a (now-Cisco-owned) firm developing observability tech for content delivery networks. Fellow Cisco veteran Hasan Alayli joined Kagan…

Hydrolix seeks to make storing log data faster and cheaper

A dodgy email containing a link that looks “legit” but is actually malicious remains one of the most dangerous, yet successful, tricks in a cybercriminal’s handbook. Now, an AI startup…

Bolster, creator of the CheckPhish phishing tracker, raises $14M led by Microsoft’s M12

If you’ve been looking forward to seeing Boeing’s Starliner capsule carry two astronauts to the International Space Station for the first time, you’ll have to wait a bit longer. The…

Boeing, NASA indefinitely delay crewed Starliner launch

TikTok is the latest tech company to incorporate generative AI into its ads business, as the company announced on Tuesday that it’s launching a new “TikTok Symphony” AI suite for…

TikTok turns to generative AI to boost its ads business

Gone are the days when space and defense were considered fundamentally antithetical to venture investment. Now, the country’s largest venture capital firms are throwing larger portions of their money behind…

Space VC closes $20M Fund II to back frontier tech founders from day zero

These days every company is trying to figure out if their large language models are compliant with whichever rules they deem important, and with legal or regulatory requirements. If you’re…

Patronus AI is off to a magical start as LLM governance tool gains traction

Link-in-bio startup Linktree has crossed 50 million users and is rolling out the beta of its social commerce program.

Linktree surpasses 50M users, rolls out its social commerce program to more creators

For a $5.99 per month, immigrants have a bank account and debit card with fee-free international money transfers and discounted international calling.

Immigrant banking platform Majority secures $20M following 3x revenue growth

When developers have a particular job that AI can solve, it’s not typically as simple as just pointing an LLM at the data. There are other considerations such as cost,…

Unify helps developers find the best LLM for the job

Response time is Aerodome’s immediate value prop for potential clients.

Aerodome is sending drones to the scene of the crime

Granola takes a more collaborative approach to working with AI.

Granola debuts an AI notepad for meetings