May 15, 2024

Spelinspektionen taking aim at Twitch for illicit online casino advertising

By Shadrack Kairu

There is a new trend in Sweden where top social media influencers have been leveraging their huge followings on the streaming platform Twitch to promote unlicensed online casinos. 

During a six-week investigation, undertaken by Sveriges Television AB (SVT), known as Kulturnyheterna, the unit analyzed the broadcasts of the most prominent Swedish streamers on Twitch. 

According to their report, 8 out of 10 Swedish influencers on Twitch were actively endorsing and advertising these unlicensed online casino platforms. This discovery is especially concerning, considering that these influencers collectively reach an audience of approximately half a million subscribers, predominantly comprised of young males born in the 1990s and 2000s.  

During their live streams, the researchers observed that 60% of these influencers employed direct marketing tactics to lure viewers to these allegedly unlicensed gambling sites. These tactics included prominently displaying links to the casinos in their profiles and broadcasts, as well as dangling lucrative bonus offers to entice viewers to register accounts. 

But wait, there’s more. The investigators also uncovered something truly disturbing – these influential streamers weren’t just passively promoting these illegal gambling sites, they were actually getting in on the action themselves.  

The report states that the influencers were “seen making direct calls to gamble, playing along with their audience, and involving viewers in decisions on stakes, deepening the engagement in gambling activities.” They were actively encouraging their followers to place bets and even collaborating with them on how much to wager. This brazenly unethical behaviour has caught the attention of Sweden’s gambling regulator, Spelinspektionen. And let me tell you, this agency has been beefed up in recent years with some serious enforcement muscle to crack down on the scourge of unlawful online gambling. 

Now, they’ve got their sights firmly set on platforms like Twitch and the key role they’re playing in enabling these shady, illegal activities. 

Swedish Gambling regulator Spelinspektionen targets Twitch

Kulturnyheterna has submitted its findings directly to Spelinspektionen, bringing to the forefront Twitch’s status as a primary nexus for the promotion of allegedly unlicensed online casinos.  

While Spelinspektionen has not yet issued any direct commentary on the specifics of the Kulturnyheterna investigation, the regulator has been unequivocal in its stance that advertising unlicensed gambling is strictly forbidden under Swedish law. Moreover, confirmed violators allegedly risk facing severe repercussions, including prohibitive business bans and potential police intervention. 

Updates to Sweden’s Gambling Act in 2018 conferred upon the agency enhanced enforcement powers, empowering it to directly mandate the blocking of financial transactions and internet access associated with suspected illegal gambling operations. 

Equipped with these robust measures, Spelinspektionen is poised to exercise its authority and crack down on individuals or entities defying the law. 

Similar action was taken in neighbouring countries

The issue of social media platforms allegedly being exploited to promote illegal online gambling transcends the borders of Sweden. Neighbouring countries have also taken decisive actions to address this concerning trend. 

In Norway, for instance, the country’s Gambling Authority has implemented a strict zero-tolerance policy towards social media platforms facilitating the promotion of online gambling content. Over the past few years, the authority has enforced a rigorous blackout on gambling advertising, with exceptions only for state-owned monopolies. 

As part of its robust crackdown, the Norwegian Gambling Authority has issued stern warnings to entities like Schpell.com, sending a clear message that the promotion of unlicensed gambling activities will not be tolerated. 

This resolute stance mirrors the determined actions taken by Spelinspektionen in Sweden. Both regulatory bodies are unwavering in their commitment to preventing the exploitation of vulnerable consumers through alleged illicit online gambling promotions. 

The gambling regulators in Europe, like the ones in Sweden, are really bringing the heat when it comes to illegal online gambling. They’re not playing around, and you can see it in the actions they’re taking.  

Just last year, the EU passed new rules to give national regulators more power to crack down on gambling ads. They can now slap some massive fines on platforms that don’t play by the rules. So, these guys are making it clear they mean business.  

Across Europe, these regulators have their sights set on stamping out illegal online gambling, especially when it’s happening on social media and streaming sites. They know that’s become a big way for this shady stuff to spread, so they’re using their new enforcement muscles to try and shut it all down. These authorities aren’t messing around – they’re bringing the hammer down to protect people from getting exploited. 

Twitch’s checkered history with gambling content

Twitch’s gambling drama isn’t just a Sweden thing – it’s a global mess they’re dealing with. The platform has been getting hammered worldwide for how they’ve handled all this gambling content. Last year, Twitch supposedly updated its rules to try and curb the explosion of gambling streams. They banned streaming of gambling sites with slots, roulette, or dice games unless those sites were legit and regulated in the US or other places with solid consumer protections.  

They singled out sketchy sites like Stake.com, Rollbit.com, Duelbits.com, and Roobet.com as off-limits. Twitch also said they’d keep an eye on things and might add more banned gambling sites later. But the Sweden investigation showed that even with these new rules, big-name streamers have still found ways to skirt around them and keep shoving unlicensed online casinos in front of their audiences.  

This really makes you wonder if Twitch can actually enforce its own guidelines. Some people think their whole self-policing approach just isn’t enough to deal with this massive problem. 

Conclusion: The fight against illegal online gambling continues

The revelations unearthed by the Kulturnyheterna investigation in Sweden have unearthed a deeply alarming trend unfolding across social media platforms worldwide. Prominent influencers, wielding the considerable influence of their extensive followings, are actively promoting unlicensed online casinos, effectively normalizing and glamorizing alleged illegal gambling activities to impressionable young audiences. 

This is a problem that transcends Sweden’s borders. Neighbouring countries such as Norway have reportedly taken resolute action, with the country’s Gambling Authority issuing warnings and implementing a zero-tolerance policy towards the promotion of allegedly illegal online gambling content on social media. 

Nevertheless, the struggle is far from over. As the Kulturnyheterna investigation was able to find, even when platforms like Twitch implement policies to curtail gambling-related content, clever influencers continue to find loopholes to exploit their audiences. 

Addressing this grave issue will most definitely necessitate a multi-pronged approach, with regulators, platforms, and influencers each required to play a pivotal role. Regulators, for example, must continue to wield their enforcement powers and make examples of those who flout the rules. 

Simultaneously, social platforms must bolster their content moderation activities and close any remaining gaps that permit illegal gambling promotion to evade detection. Influencers themselves must be held accountable for the consequences of their actions. 

Ultimately, the battle against illegal online gambling concerns us all. The proliferation of these unregulated activities not only imperils players with potential financial and emotional harm but also carries broader societal implications, distorting markets and depriving governments of crucial tax revenue.

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