"We didn't think that was good for the community" - Twitch CEO Dan Clancy explains why the platform banned gambling-related content

On June 1, 2023, Twitch CEO, Dan Clancy, appeared as a guest on popular VTuber Filian's livestream. During their conversation, the latter mentioned the platform's decision to prohibit gambling-related content. In response, Clancy revealed that the issue was the lack of regulation with certain off-shore gambling sites. Clancy also mentioned that content creators were driving a "significant" amount of revenue to these platforms, and added:

"The amount of money that was flowing, where our creators were building the community and the connection they formed on Twitch to drive people to these sites, it was a significant amount of money to a small number of creators. So we decided we didn't think that was good for the community. So we decided to ban the unregulated."

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"We do have a problem" - Twitch CEO Dan Clancy on broadcasting content featuring unregulated gambling sites

The discussion began at the 01:31 mark of Filian's livestream when she asked for clarification regarding the platform's decision to ban gambling. She inquired:

"It looked like gambling websites were sort of banned off of Twitch, and I think there's a lot of misconceptions around, like, what actually got banned. In terms of gambling. I did a poker sponsor stream, and people were like, 'Isn't this banned?' What actually is banned, in terms of gambling on Twitch?"

Dan Clancy responded by saying that the platform was "very surgical" in its handling of the situation. He elaborated:

"Yeah, we were very surgical in that. Our view was, 'Listen, people can decide what they want to watch.' But the thing that growing was these unregulated off-shore gambling sites. And just for people that don't understand, right?"

Clancy believes that the lack of regulation may foster an environment that is susceptible to foul play and unethical behavior:

"These sites, there's nobody overlooking to see, for example, what are the odds on the tables. Do they tweak with them? Do they change them? Because they're not regulated. It seems they decide what they want to do. There's a reason you have to VPN in, and you can't... you know, do it from most major, you know, major countries."

Timestamp: 01:31:30

Clancy later clarified that there was no problem with streaming gambling. He then said that Twitch does have a problem with broadcasting content associated with unregulated third-party gambling platforms:

"But, in general, there's no problem with streaming gambling. But, we do have a problem with you streaming on these unregulated, third-party sites."

Filian followed up by asking if Twitch would lift bans on unregulated websites, to which Dan Clancy responded:

"All I can say is my own view. Right? I have a hard time... if these sites become regulated, if they are willing to adhere, to like regulations of, you know, most major countries, in terms of what they need to do to be a gambling site, right? Then, I'm like, 'Of course!' But, if their position is, 'No, we're not going to do the things that most major countries think is important, in terms of consumer protection.'"

He added:

"Then our view is, we don't want that on Twitch, driving our community to VPNing to these unregulated sites. I wouldn't feel great about that. That aspect of it."

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Reddit community responds to Dan Clancy's explanation

Dan Clancy's explanation of the ban on unregulated gambling websites has received a lot of attention on the r/LivestreamFail subreddit. Here's what the Reddit community had to say:

Reddit community sharing their thoughts on the streamers' clip (Image via r/LivestreamFail)

Redditor u/Individual_Respect90 found it amusing to see Twitch's CEO interacting with a VTuber. Meanwhile, others speculated on Tyler "Trainwreckstv's" potential response to Dan Clancy's logic.