Twitch Completely Bans Gambling and Cuts Streamer Revenue
Twitch thinks they deserve 50% of the revenue that streamers make for them.
If you haven’t been following all of the drama that has been circulating on Twitch recently - good. I am not going to explain every single thing leading up to this moment, but this new information just feels like an even harder slap in the face after what was already a stressful week for drama.
Twitch streamer, Sliker, came out and revealed that he had scammed over $300,000 from other streamers to fuel his gambling addiction. He would show his streamer peers and close friends photos of his bank account being frozen and then beg for money. The streamer also reportedly had been doing this for almost two years, even on a friend who was undergoing chemotherapy treatment at the time. Long story short, Twitch streamer XQC and Youtube streamer Ludwig agreed to help pay back every single person that Sliker owed money.
This entire debacle reignited a conversation about gambling being allowed on Twitch. Many people came forward to talk about their own gambling addictions, resulting in the consensus that advertising gambling to any audience is bad, especially when a lot of streamers are being paid by websites like Stake.com to advertise to impressionable kids (and adults).
In what felt like a weekend of nothing but bad news, Twitch came in to save the day, officially banning gambling sites. “These sites will include Stake, Rollbit, Duelbits, and Roobet. However, we may identify others as we move forward,” said Twitch in a statement posted to Twitter.
It felt like Twitch was actually listening to the community and finally made a decision that is a net positive, except for the streamers who only gamble while streaming. Morale for Twitch was high, for about half a day. Until Twitch made another blog post detailing that they were going to be changing the minimum streamer revenue split to 50/50 across the board for all content creators.
Before this decision, most of the top streamers had a 70/30 split, but now they will be affected too. Now, like any company who doesnt give a second thought to the people actually creating the content, they place the blame on the cost to host a smaller 100 person livestream. Which would be at least an understandable excuse if Twitch wasn’t owned by Amazon. AND if their biggest live streaming competitor, Youtube, wasn't paying a 70/30 revenue split across the board for all content on their platform.
At the end of the day, this decision is just a slap in the face to the people who make Twitch the most money. This forces creators to feel the need to run more ads on their streams, which drives viewers away. No one likes quickly clicking on a stream because something is happening live in real time (and there isn't an option to rewind like YouTube), and you get two minutes of ads that you can't skip. So this choice to cut revenue from the people who make content for your platform doesn’t help anyone and is only going to drive your streamers over to the better competition. Youtube streaming is perfect, but all of the things wrong with going live on YouTube are mainly just UI and chat issues, which could be easily fixed.
Some streamers have already expressed interest in switching platforms once this change gets implemented next year. It will be interesting to see how Youtube capitalizes on Twitch's inevitable downfall.
Twitch Streamer Creates an Online Archive of Every SNES Game Manual
More on news