Some audience members of Twitch’s biggest stars are going bankrupt after watching their favorite streamers play crypto gambling as part of multimillion-dollar advertising deals, according to a Bloomberg report. (opens in a new tab).
Twitch’s “Slots” section, where its gaming content resides, is its seventh most viewed category (opens in a new tab) at the time of writing. That puts him ahead of several games that we generally consider streaming titans, like Fortnite and Dota 2, and it likely has something to do with the insanely lucrative marketing deals that some of Twitch’s hottest stars, such as xQc, Trainwreckstv, and others – sign with crypto gambling sites to advertise their product to audiences that number in the millions (opens in a new tab).
Reports from Bloomberg detail the oceans of money flowing between streamers and the gaming sites that sponsor them. In one clip, Trainwreckstv blusteringly states that they make well over $1 million a month from their deals, while Stake reportedly made $119 million in a single month from their deal with xQc.
Meanwhile, fans of those streamers who find themselves drawn to the game by the fun and camaraderie of streams haven’t ended with horror stories of empty bank accounts, depleted savings and loan after loan after loan. . It’s a stark contrast to the glitz and glamor of the streams that brought them to crypto gambling in the first place, and that’s what tends to happen when your losses aren’t covered by ad deals worth millions. of dollars.
It’s a sobering read and worth reading in its entirety for the dark and gory details of what happens when some of the biggest stars of the modern era, including Drake, whose I had no idea, are paid an insane amount of money to market highly questionable products to highly suggestible audiences. In some cases, kids as young as 16 are losing thousands of dollars a month on gambling sites they first saw through their favorite streamers.
The Bloomberg reporter reached out to a Twitch spokesperson, who confirmed that Twitch is currently in the midst of a “thorough review” of gaming on the platform, suggesting they may be preparing to take action against such flows. For some people, however, it’s already too late, and it’s hard not to think that Twitch might be inclined to move slowly to end a relationship that’s making so much money for everyone but the public.