Twitch limits revenue from top creators and bans certain gaming sites

A hand holding a phone with the Twitch logo in front of a screen displaying multiple Twitch channels.

Earlier reports indicated that major overseas crypto casinos were being promoted on multiple Twitch streams, but it appears the issues with gambling on the platform run even deeper than that.
Photo: salarko (Shutterstock)

Twitch is making big changes to its platform. The streaming platform moved to stop foreign gambling companies from dumping Twitch users, but almost in the same breath announced that it was cutting the pay of top Twitch streamers.

In a update published on Tuesday evening, Amazon-owned Twitch said it would change its policies to ban unlicensed gambling sites that include slots, roulette or dice games, citing popular sites like Rollbit.com , Stake.com and Duelbits.com. Although they still allow the most commonly accepted forms of gambling like sports betting, fantasy sports and poker.

The issue of gaming on Twitch became a hot topic after Bloomberg released a report in late August noting how popular gambling sites had become on Twitch, and that overseas casinos were partnering with streamers to entice watchers to gamble with crypto. Stake.com has been widely quoted in Bloomberg reporting.

Twitch’s decision against the game comes after weeks of scandals involving high profile Twitch users sucked into the parasitic world of gaming. ItsSliker, which currently has more than 420,000 subscribers on Twitch, was accused over the weekend of begged to borrow hundreds, if not thousands of dollars from fans and fellow streamers. Content creators love lukeafkfanwhich has 174,000 followers, openly talked about loaning Sliker $27,000 which has not been repaid.

Sliker’s alleged abuse was documented thanks to a Reddit thread containing screenshots of discord chat logs showing ItsSliker asking its viewers for money. The pictures show a consistent pattern where he asks for several hundred or several thousand dollars at a time and promises to return their money within a few days. He regularly claimed that he had sponsorship offers this would allow him to repay the loans with interest.

Sliker admitted to many of the allegations made against him by fellow Twitch producers over the weekend flowclaiming that he started with the game on the skins for Counter-Strike: Global Offensive before getting bogged down in the world of sports betting. He could have scammed fans and other content creators out of $200,000.

The August Bloomberg article noted that “slots” was the seventh most popular category for streaming content on Twitch, even more popular than Fortnite. As noted Kotakuseveral prominent streamers, including Pokimane, Mizkif, and Devin Nash, mentioned protesting against Twitch for banning gambling streams.

Although some members of the Twitch community like the streamer Rail accident noted that the streaming platform does not fully solve the current problem. ItsSliker was a self-confessed sports game addict. Noting that the Sliker problem started with Counter-Strikewhich has been widely cited for its addictive quality, shows how gaming has seeped into so many aspects of online culture.

Gizmodo reached out to Twitch to ask if there were any plans to fix any other gameplay issues on Twitch, but did not immediately respond.

But the hits are linked. Dan Clancy, company president, wrote on Wednesday, they were resisting calls to move streamers to a 70/30 revenue split while limiting the earnings of some of the platform’s top streamers. He wrote that the vast majority of Twitch streamers shared 50% of their net income with Twitch, but over the years some of the biggest streamers were offered “premium membership terms” that gave them 70% % of total net revenue from subscriptions and other payments .

Starting in June 2023, Clancy said streamers still on premium contracts would see the first $100,000 earned from subscription revenue still split 70-30 with Twitch. However, any income over $100,000 will be split 50/50.

Earlier reports had suggested that Twitch was plans to reduce payments to top streamers, so this latest announcement isn’t too surprising. What’s more interesting is Clancy’s reason for the change.

“We don’t think it’s fair for those on standard contracts to have varying revenue shares based on streamer size,” the Twitch president wrote, adding that it shouldn’t affect 90% of these accounts with premium subscription terms.

Although Clancy acknowledged that many users use comment pages to beg for a full 70/30 split regardless of the size of their chain, but the company president tried to push revenue generators like the advertising incentive program which he says has already increased streamers’ overall revenue.

The announcement comes as Twitch feels the heat of competition with platforms like YouTube and TikTok which have tried to promote their own streaming services. Revenue generated by TikTok streams is shared 50/50 with the creators. In 2020, Google-owned YouTube poached three of Twitch’s top streamers to stream exclusively on its platform. Although it doesn’t look like Twitch is losing too much. According BusinessofAppsTwitch still leads the pack in quarterly hours watched compared to Youtube Games and games on Facebook in 2021 maintained 9 million accounts that spread out at least once a month. The company claimed $2.6 billion in revenue in 2021, which came mostly from advertising dollars.