twitch-crypto-gambling-scam

Latest Updates On The Twitch Crypto Gambling Scam

Popular streaming platform Twitch has increased its policing and has been monitoring closely several contents that are controversial. Many streamers have been banned from that platform and many will be banned in the future. In this article, we will discuss the Twitch crypto gambling scam. 

Streaming gambling is nothing new on Twitch. For years the streamers have put money into poker and slot machines often in collaboration with casino websites and other companies of gambling. Though gambling streaming is allowed on Twitch but these channels have a history of employing sketchy behavior. 

Why Is Gambling Allowed In Twitch?

Over the past few months, gambling has become a famous pastime in Twitch. There are several streamers who get in on this action. Legal gambling is allowed on Twitch with the help of a site sporting the official section for poker and slots. In many scenarios, gambling streams are the result of many companies that sponsor their game. They often provide the streamers referral codes and currency so that they can blow them during the stream. While the streamers need to disclose the sponsored ads, they do not always remember that they are being provided money with which they will have to gamble. They start to put hundreds and thousands of dollars in the slot machines in sites such as Stake which is a self described “Bitcoin Casino” whose service terms stop US based users from participating due to their gambling laws. However, some users still participate by changing their VPN. 

Twitch Crypto Gambling Scam

Even though gambling is legal in Twitch, there are several streamers that perform illegal activities related to gambling. There are fake casino streamers as well. If you visit the Stake website from a US browser, you will see a message popping up on your screen that will read like, “Due to our gaming license, we cannot accept players from the United States.” Even though Stake does not have a gambling license in any state, gamblers like Nikan and other US based gamblers easily avoid this by availing VPNs. Promoting gambling sites that cannot be operated in the US and making money by referring the residents of the US can be placed under illegal activities. 

Twitch is in the center of a gambling roar, aided by the increase of the “crypto casinos” website where the gamblers can buy digital currencies like Ethereum or Bitcoin for their use in the virtual games of chance like blackjack, slots, and baccarat. And websites like Roobet and Stake are paying famous streamers to play the casino games on their platform, sometimes offering tens and thousands of dollars every hour. These streamers act as the role models for many gambling enthusiasts. But it is not always good to take the advice of these role models as you can lose money in gambling. There can be streamers that play with their own money but keep up the appearance of painless fun, crypto casinos providing these streamers to refresh their crypto wallets with money. 

Matthew Rinaudo said on this Twitch channel that “It wasn’t my money”. He says that he was receiving $35,000 every hour to do gambling streaming which is double the price he generally receives in any sponsorship. Earlier this year, he had streamed gambling just five times in April and he asserts that the sponsors were fleshing out from his account once with $5,000. Later he said that, 

“Morality came into play. It did. I felt shitty doing any type of gambling sponsorship.”

He further added, 

“And I know people are like Mizkif, but you do sponsors all fucking day. If you download Dungeons and Dragons, what’s the worst that happens? You lose $40 and a couple of hours of your life. Gambling is different.”

Online Gambling And The United States

Virtual gambling is monitored by a combination of state and federal laws in the United States. The gambling websites need a license to work in individual states no matter if they are working with digital currency or hard USD. The US has ban casino streamers. There are many crypto casinos like Duelbits and Stake that are based in offshore countries like Curaçao and do not possess a license. Yet can be easily accessed from the US through VPN. According to Jeff Ifrah, who is an attorney specializing in online gambling law, 

“While these sites block the US, they do not prevent access from people within the US.”

The Twitch crypto gambling scam is encouraged more by the sponsorships. Irfah asserts that he has warned the gambling streamers against promoting these crypto gambling sites while they are streaming from the US. 

“My advice to them is that, basically, the underlying activity is illegal. It still happens, though. There’s a lot of money in it. Streamers have told me, ‘Hey, I don’t want to just give this up. This is a big opportunity for me because these sites pay a lot of money.”

Conclusion

Finally, it is best to use caution in abundance when dealing with gambling and streaming. The Twitch crypto gambling scam has been monitored at an early stage or else that would have gone far away. 

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