Introduced to the world in the mid-1990s, the first gambling websites were virtually free for everyone since there were no laws regulating online gambling activity. All casino operators of those times can be divided into two categories – scammers and honest service providers. So, we can say that the online gambling industry at the stage of its formation was based on trust, similar to how cryptocurrencies operate. However, after a while, the governments of many countries realized how large the cash flows attracted by online casino operators are. While some legislators have taken the initiative to create a regulatory framework to regulate gambling activity and benefit from tax payments to the state budget, others have banned online gambling. Several years ago, a similar problem faced Twitch, which gained popularity as a gambling streaming platform. Although at first the question of the legality of this activity was not raised, the popularization of gambling streaming has led to the fact that the governments of many countries where online gambling is prohibited have joined this event.
So online gambling has a bad reputation in many countries for being associated with fraudulent activity and the risk of gambling addiction. When it comes to streaming on Twitch, it also got a bad name as some channels are directly related to online gambling. It is enough just to recall the scandal that took place in 2016 when the streamer Phantoml0rd was banned due to the distribution of online casino advertising on his Twitch channel to understand how acute this problem has become. However, the number of gambling streams continues to grow, so we decided to sort out the issues regarding the legality of this activity. Moreover, we will tell you about the prize draws run by Twitch streamers, which can also be viewed as a form of gambling entertainment.
How Gambling is Regulated on Twitch
So, is Twitch casino slot gambling legal? Despite the fact that there is a certain gambling component in streaming, Twitch did not want to ban streams completely. Therefore, streaming online gambling is legal, provided that you follow a few important rules:
- The legality of streaming gambling options. So, every Twitch streamer who wants to operate legally must use certified gambling content (Twitch casino games) provided by a licensed online casino. Moreover, all certificates and licenses must be valid in the jurisdiction from where they are streaming.
- Observe the limit on the duration of streams. So, any Twitch streamer demonstrating gambling gameplay must adhere to the 30-minute limit on the duration of the stream. According to experts, this limitation helps to reduce the negative impact of the stream when it can be regarded as advertising gambling entertainment.
- Avoid explicit gambling advertisements that could theoretically lead to addiction to gambling.
In addition, you should remember about age restrictions. While in most countries gambling activities are prohibited for persons under the age of 18, in some jurisdictions gambling is not available to persons under the age of 21. So, Twitch streamers broadcasting gambling should display a ‘mature audience’ message by clicking the appropriate button. Thus, both Twitch and streamer relieve themselves from responsibility for viewing video content by persons under the age at which online gambling is allowed.
How Raffle & Giveaways Work on Twitch
All of the above is more related to Twitch streamers who broadcast the gameplay of Twitch casino slots and other games for real money. As known, streamer followers can not only enjoy streams, but also get something more valuable. Using a Twitch gambling bot, streamers can notify their followers about upcoming promotions and lotteries. So, there are lotteries and giveaways run by Twitch streamers that can also be viewed as a form of gambling entertainment. Here are some rules regarding Twitch giveaways:
- Streamers cannot force their subscribers and those who watch their streams to participate in any giveaways on the channel. Such participation must be entirely voluntary.
- Streamer cannot charge a fee for the opportunity to participate in a lottery or drawing, unless the streamer has a special license to conduct such drawings with entry fee.
- All donations to the channel are voluntary. The streamer should not provide increased winning chances to donators.
Although Twitch gambling is not directly related to online gambling, you should be careful even if you are a mere viewer. Before you start your Twitch gambling activity, please read the rules and find out about possible restrictions in your jurisdiction to avoid legal consequences.