Online cryptocurrency casinos like Stake.com, Roobet and Duelbits are not exactly legal in the United States as per the letter of the law. However, the illegality has done very little to stop some of the biggest streamers on Twitch from not only winning hundreds of thousands of dollars’ worth in crypto in a single gaming session, but also live steaming it on Twitch to millions of their followers.
Duelbits runs amok in the USA
If you were to try and access one of these cryptocurrency online casino websites from anywhere in the US, you would receive a message which essentially tells you that players from the US are not accepted, and rightfully so. Since such casinos are not legal in any US state, this barrier to entry is sound and in accordance with the law of the land. It is evident that most states in the US still face an uphill battle when it comes to legislation and online casinos.
Using virtual proxy networks to play at crypto casinos
So how did trending Twitch streamers like Tyler Niknam (also known as Trainwrecks) and Felix “xQc” Lengyel access these websites and win such substantial profits? They simply used a VPN. VPN is short for virtual proxy network, and it is a way to hide your actual IP address (and thus your location) and spoof it with a different IP address which would decode to originating from another part of the world. You don’t have to be a coder or some kind of tech wizard to use a VPN, there are lots of simple, light weight VPN applications that are ready to download and start using out of the box. Most online casinos offer bitcoins as a deposit method to customers these days, and US players can easily sign up at such casinos using VPNs.
Accessing banned crypto casinos using underhand methods is one thing, but streaming it to millions of live viewers constitutes promotion illegal gambling which is another criminal offense altogether. In fact, this is why Niknam physically moved to a sparsely furnished apartment somewhere in Canada and got into the rhythm of daily gambling and streaming. Sometimes, his gambling sessions would last over 12 hours in a single day.
Crypto casinos paying top Twitch streamers for Promoting their Sites
Twitch is currently witnessing a huge surge in gambling related streaming and it is primarily being driven by the advent of crypto casinos like Stake, Roobet and Duelbits. These crypto online casinos allow players to wager using popular crypto coins like Bitcoin and Ethereum on digital renditions of iconic casino games like Blackjack, Baccarat, Slot machines, etc.
These websites have quickly realized the potential of promoting themselves through Twitch and are now actually paying streamers with massive follower bases to play and stream from their sites. In fact, Duelbits allegedly offered a streamer named Adin ross up to $1.6 million per month to play slot games and stream them on his Twitch channel.
Twitch Streamers Exposing Underage Players to Online Gambling
A popular tech news blog recently uncovered that as many as 64 of the top one thousand biggest (in terms of views and traffic) Twitch streamers have streamed online casino gaming in return for sponsorship deals from crypto casinos. Casinos are said to be specially targeting streamers who are part of Twitch’s partnership program and inculcating them into their sponsorship deals.
Streamers from the partnership program are pretty much the cream of the crop. They are privy to additional features and support from Twitch and also earn money at a higher rate thanks to the revenue sharing model which is exclusive to such partner streamers. Even though Twitch claims that these streamers can act as role models in the gaming community, the fact that a lot of them are streaming gambling to followers, some of whom are as young as 13-17, does not seem to have anything ‘role model’ about it. Gambling can be addictive and minors are especially at risk.
Streamers who are paid by the crypto casinos to play and stream are actually playing with house money and their cashier or casino wallets are automatically refreshed by the casino. When you watch a stream, you may get the impression that it is so easy to win tons of money and that it is harmless. But it should be understood that these streamed gaming sessions have been specially curated precisely to deliver this kind of sentiment.
26-year-old Twitch streamer Rinaudo seems to be one of the few with a moral compass. After having done a few paid streaming sessions, Rinaudo thew in the towel as far as gambling streaming is concerned. He stated that he just didn’t feel good doing any type of gambling sponsorships. He further stated that if you were to download a video game like Dungeons and Dragons, the worst-case scenario is that your wallet may become lighter by about 40 dollars and you may waste a few hours of your life playing it. However, with gambling, the worst-case scenario is much grimmer, especially when underage players are involved in the equation.
A vast majority of gambling games streamed on Twitch are illegal in the US and that makes the act of streaming it from within the US an offense too. Streaming gambling can pay well for bigshot Twitch streamers, but it could certainly also land streamers in a sticky legal grey zone. Not to mention, it completely disregards the wellbeing of underage viewers.