Chipotle removes ads from Twitch slots, poker categories
Sharpr is a weekly newsletter covering the intersection of esports and betting
Hey everyone, Cody here.
We’ve got a dense issue on our hands this week headlined by a new development in the ongoing Twitch gambling debate.
A major brand has pulled its advertisements from these categories in what may prompt more companies to distance themselves in an effort to avoid being entangled in its moral and legal implications.
Let’s dive right in.
In this week’s edition of Sharpr…
Chipotle removes ads from Twitch slots, poker categories.
The Spanish government cracks down on loot boxes.
Dapper Labs hires former DraftKings senior director.
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Chipotle removes ads from Twitch slots, poker categories
Mexican restaurant chain Chipotle has removed its advertisements from the “slots” and “poker” categories on Twitch, the company’s Senior Director of External Communications Erin Wolford said in an email exchange on May 27.
The email correspondence was revealed by Erin Jordan, the creator of an online petition urging Twitch to ban casino gambling content from the live-streaming platform.
The petition seeks to put an end to “unregulated online casinos that disproportionately damage young viewers and racial minorities.”
At the time of writing, the petition has more than 1,900 endorsements.
Wolford confirmed that the ad placements were removed at some point in May, suggesting the decision was prompted by the petition that was sent to Chipotle after receiving 1,000 signatures. Jordan claims to have also contacted several other companies that advertise in these categories, the likes of which include McDonald’s, Uber, Pepsi, and Logitech.
Chipotle declined to comment further on the matter.
🦈 Sharpr Take: Chipotle opting to distance itself from gambling represents a small, but important crack in the wall for Twitch, which has otherwise turned a blind eye to the persistent controversy surrounding casino content on its platform.
Often this includes influential creators and personalities such as Félix “xQc” Lengyel and Tyler “Trainwrecks” Niknam live-streaming reckless gambling on cryptocurrency casino platforms to potentially underage audiences. Top performing creators are paid millions of dollars to promote Curaçao-licensed platforms such as Duelbits and Stake on Twitch, where 21% of users are between 13 and 17-years-old.
The ebbs and flows of this long and drawn-out discourse ranges from mainstream media pick-up to top creators such as Imane "Pokimane" Anys speaking out against the “legally ambiguous and morally corrupt” nature of these streams.
But despite the ongoing public pressure, Twitch has done little to acknowledge or address these concerns, nor is there an incentive for it to do so. Slots is the eighth most popular category on Twitch, with 1M followers and more than 10M hours watched in the last week, according to TwitchTracker.
Any meaningful change Twitch could undertake would deal a pronounced blow to its audience and engagement – that’s a tough pill for them to swallow despite the legal and moral implications. Although, the risk associated with promoting gambling content to minors should be of far greater concern given a lawmaker could prove exponentially more disruptive, similarly to how U.S. Rep. Alexandria Ocasio-Cortez (D-NY) introduced legislation to prevent U.S. Armed Forces from recruiting through live-streaming platforms (the amendment was ultimately rejected in a floor vote).
As this important topic continues to trend in and out, it wouldn’t be surprising to see more brands like Chipotle pull advertisements and isolate themselves from the tripwires associated with unregulated gambling. That could drive a material change over time.
Spanish government cracks down on loot boxes
Spain’s Ministry of Consumer Affairs will attempt to regulate loot boxes (an in-game mechanic providing randomized rewards often for real-world money) in video games, the government agency revealed last week.
The announcement was made during a seminar organized by the Ministry to discuss loot boxes with experts and professionals.
Consumer Minister Alberto Garzón says that loot boxes are “very similar to traditional games of chance” and create “compulsive consumption behaviors” in users.
On June 3, Garzón told Radiocable that his office has already drafted “a very specific law” that would be presented “in a few days” to regulate loot boxes–no further information on the proposal has been revealed at the time of writing.
According to figures from the Ministry of Health shared during the meeting, 30% of gamers under 18-years old acknowledge they “have paid significant amounts of money to acquire an upgrade of these characteristics."
“You're going to try to get an upgrade of that video game feature without knowing exactly what you're going to get, randomness is included. You're going to get a prize and also this can be interchangeable with an economic value. What this does is that we have a kind of slot machine within the video game itself," Garzón said.
Garzón already stated in February that he would be evaluating the inclusion of loot boxes in legislation that regulates games of chance. Play-to-earn games are also under examination given the NFTs and cryptocurrencies rewarded to users that hold real-world economic value.
The Asociación Española de Videojuegos, the national trade association of the video game and esports industry in Spain, has rejected Garzón’s claims.
🗞 In the news
DraftKings’ former Senior Director of Strategic Partnerships Adam Barrick has joined Dapper Labs as its VP of sports, business development.
1xBet has become the official betting partner of TSM’s Battlegrounds Mobile India roster.
ESE Entertainment has commenced trading on the OTCQX.
📈 By the numbers
Allied Esports, owners of the HyperX Esports Arena in Las Vegas, has reported revenues of nearly $5M in FY2021.
Electronic Arts announced that the Apex Legends Global Series Championship will take place at the PNC Arena in Raleigh, North Carolina, featuring a $2M prize pool.
New York has collected $270.5M in online sports betting tax revenue–FanDuel generated 44.7% of total handle.