Crypto gambling has recently become more prevalent on Twitch, the well-known streaming site where millions of fans spend hours each day watching live feeds from their favorite gamers or even working out arithmetic problems in real time.
Gambling did sort of Originate From Counter Strike Skins
According to Bloomberg video game reporter, who made a comment in a podcast for Bloomberg Crypto, cryptocurrency gambling did not start with the cryptocurrency but rather with Counter Strike Skins, a hugely popular first-person shooter game where players love to “dress up their guns with what are called’skins,’ and the lucrative marketplace for people where they can sell and buy these skins.
She continued by citing websites she had previously come across that offered people the chance to “earn” such skins by playing roulette. These websites were profitable and operated by big businesses, but the most crucial factor was that minors also participated, which is allegedly “a problem by legal standards” and has led to numerous lawsuits.
On the question of when exactly Twitch crypto gambling became popular, reporter said that some of the skin gambling sites transitioned to crypto gambling websites “so definitely know their audience.”
She continued, “Crypto gaming is a fairly interesting thing, but it is illegal everywhere in the United States since it is regulated at the state level, and no state has legalized it yet.”
She then shifted her attention to offshore businesses, focusing on Stake.com in particular, which is incorporated in Curaçao and offers roulette, slots, and blackjack. Players wager cryptocurrency rather than actual money, and because of this, it appears to be a continuation of the Counter Strike Skin gambling. She also made the implication that because cryptocurrency gaming is legal yet illegal at the same time, minors can gamble there.
She did not miss the chance to criticize Drake and his association with Stake.com, pointing out that his initial gaming sum a few months prior was $9 million and that his roulette bets ranged from $300,000 to $1 million.
Avoiding regulatory detection
The host then inquired as to the procedures by which cryptocurrency gambling businesses can ascertain whether a player is wagering from an authorized state or not. Reporter responded that neither Congress nor the American Gaming Association (AGA) have cryptocurrency gambling on their radars because both organizations are focused on tackling the more difficult problem of illegal sports betting.
She emphasized that all gamers who stream gambling material on Twitch and are sponsored by Stake.com have physically moved from the US to Canada when asked about the legality of cryptocurrency gambling globally.
Regarding the financial aspect of Stake.com sponsorships, Reporter stated that she is aware of a streamer who has received an offer of $90 million to stream content related to cryptocurrency gambling, and even that is not the highest offer, citing examples of others who earn several million dollars each month.