Twitch takes another bite out of unregulated gambling
Twitch takes another bite out of unregulated gambling
Sharpr is a weekly newsletter covering the intersection of esports, betting, and Gen Z
Hi everyone, Cody here.
We’re back to our weekly coverage after some time spent enjoying the summer months and planning for a big move down south.
Today we’re digging deeper into yesterday evening’s breaking news: Twitch’s expanded gambling policy, which adds two new online casinos to its list of prohibited sites, and, an outright ban on skin betting, which after my breaking story on Roblox gambling a few weeks ago, couldn’t have been timed better.
Let’s get into it.
In this week’s edition of Sharpr…
Twitch takes another bite out of unregulated gambling.
GG.BET enters UK market through licensing deal.
Kentucky says yes to esports betting.
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Twitch takes another bite out of unregulated gambling
Twitch has expanded its ban on livestreaming gambling content, the company unveiled on Wednesday.
Livestreams of online casinos Blaze and Gamdom are no longer permitted, joining four other sites banned in October when its new gambling policy went into effect.
Promotion and sponsorship of skin gambling is also now prohibited.
Twitch will continue to allow fantasy sports, sports betting, and poker content.
Twitch says that gambling viewership has dropped by approximately 75% following its policy update last year.
“This meant the change had an immediate impact, and that our community has been better protected from scams and related harms,” the company said in a tweet. “Since then, we’ve observed some new trends and are updating our list of prohibited sites to better protect our community.”
As Twitch noted from the onset of its new guidelines, and reaffirmed yesterday, the company will continue to identify and add others to its list of prohibited sites over time.
The company notes that it takes into consideration “whether the site is licensed in the US or other jurisdictions that provide sufficient consumer protections” when determining whether or not it should be allowed on the platform.
🔎 Between the lines: It’s safe to say this news probably caught most people off guard.
Twitch’s entanglement with casino content was previously unignorable. But since instituting its gambling policy in October, things have quieted down significantly, and as the company pointed out, viewership of this content has gone down a whopping 75%.
That’s unsurprising in some ways considering the top creators most well-known for dishing out fervent casino content through partnerships with the now black-listed sites have all since jumped ship for Kick, the new livestreaming platform backed by Stake co-founder Ed Craven. The platform made mainstream headlines in June when it signed a $100M deal with Félix “xQc” Lengyel, a top streamer who became the poster child of Twitch’s gambling controversy.
I’d be remiss not to speak to the ban on skin gambling as part of these policy revisions; the unregulated betting industry often found serving minors has experienced somewhat of a resurgence recently.
G2 Esports, one of the biggest esports organizations, announced a partnership with CSGORoll in May that drew a lot of attention to the matter (and is likely to be impacted in some form by this update). Counter-Strike developer Valve responded by explicitly banning “gambling” as part of its updated terms of service, while Australian regulators followed up the next week by banning CSGORoll in the country.
And, as you may remember from a few weeks ago, I uncovered a very discreet and fast-growing skin gambling industry being built around Roblox. Under these terms, those Roblox casino sites – such as Bloxflip, RBXFlip, and RBLXWild – will no longer be allowed on the platform.
A recent survey indicated that 54% of respondents were introduced to gambling through content creators, and 71% of them placed their first wager between 13- and 17-years old, highlighting the evolving (and complicated) relationship between gambling, livestreaming, and player acquisition.
Twitch’s initial ruling on gambling insisted that the livestreaming platform would have to play regulator for the long-term. With this update, it seems that’s exactly what they’re doing.
W for Twitch.
GG.BET enters UK market through licensing deal
Esports-focused operator GG.BET has entered the UK market via a licensing deal with Rednines Gaming.
Rednines Gaming’s DR.BET brand will now operate under the name GG.BET UK.
GG.BET will gain market access to the UK through the deal, adding to its regional audience capture provided by existing gray market licenses in Curaçao and Malta.
The UK esports betting segment has reportedly grown 47% over the last three years, according to research from GG.BET.
Sergii Mishchenko, CEO of the newly-minted GG.BET UK franchise, said the move would contribute to differentiating itself among other sportsbooks.
“The decision to purchase the GGBET franchise is an important step for the development of our company,” he said. “The UK betting market is highly competitive. As a result, we decided to continue operating under a strong international brand that will allow us to stand out among other bookmakers.”
GG.BET is one of the longest-standing esports-first bookmakers, having launched in 2016 and maintained an active presence in gaming since. The operator has partnerships with prominent teams such as Team Vitality and Natus Vincere, as well as event organizers PGL and StarLadder.
🔎Between the lines: To the point made in Mishchenko’s press statement, operators don’t have it easy, particularly in regulated markets.
Swapping the DR.BET name for one like GG.BET with a more pointed brand and targeted audience seems like a smart move, all things considered. Offering esports markets is a unique ingredient surely to help with player acquisition while providing a point of differentiation for the UK operator.
This also represents a win for GG.BET who will benefit from increased exposure in one of esports core markets. In the UK, approximately 88% of 16- to 24-year olds play video games, and 43% of those who game watch esports. And of course, getting paid for a brand rights deal is pretty nice too.
Kentucky says yes to esports betting
Kentucky is the latest state to include esports in its oncoming sports betting industry.
The Kentucky Horse Racing Commission approved online sports betting bill HB551 in July with a launch date of Sept. 28.
Under the proposed legislation, esports falls under ‘sporting events,’ allowing state-licensed books to accept wagers on competitive gaming.
Kentucky succeeds North Carolina as the latest state to say yes to esports wagering.
Heather Fletcher of Bonus.com has the full scoop.
🗞 In the news
UK games industry stakeholders intend to limit childrens’ ability to access loot boxes.
The Victoria Police has partnered with the Esports Integrity Commission.
Abios has partnered with UK-based operator Dragoni.
📈 By the numbers
Luckbox intends to raise $1.8M for “corporate development, facilities expansion, and technology advancement.”
Players’ Lounge has handled more than $200M in wagers, up from $150M in November.
IBIA’s Q2 2023 Integrity Report has identified only one suspicious match alert in esports.
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