It has come to light that a significant number of Swedish influencers on the video platform Twitch have been endorsing unlicensed online casinos, sparking concerns about the promotion of illegal gambling activities.

Following a thorough investigation conducted by Kulturnyheterna, the investigative arm of Sveriges Television AB (SVT), it was uncovered that eight out of ten prominent Swedish influencers on Twitch have been actively promoting unlicensed casinos to their vast audiences.

Over a period of six weeks, Kulturnyheterna meticulously reviewed the broadcasts of these influencers, revealing how they have been disseminating advertisements for unlicensed online casinos through extended live streams, urging hundreds of thousands of followers to engage in gambling activities.

The investigation further highlighted that these influencers collectively reach an audience of approximately half a million subscribers, predominantly comprising young males born in the 1990s and 2000s.

During their live streams, 60% of these influencers employed direct marketing tactics, including sharing links to unlicensed casinos in their profiles and broadcasts, as well as enticing followers with bonus incentives to create casino accounts.

According to Kulturnyheterna’s report, these influencers were observed actively encouraging their viewers to gamble, participating in gambling activities alongside their audience, and even involving viewers in decisions regarding wagers, thereby intensifying engagement in gambling-related content.

Swedish Gambling Regulator Takes Aim at Twitch

Twitch, owned by Amazon, has faced scrutiny over its role in facilitating these advertising infringements. Despite implementing community guidelines in 2022 to prohibit the promotion of gambling content, Twitch has seemingly struggled to curb such activities effectively.

Kulturnyheterna has submitted its findings on these advertising violations to Spelinspektionen, Sweden’s gambling regulator, emphasizing Twitch’s status as the primary platform for promoting unlicensed casinos.

Spelinspektionen, armed with enhanced enforcement powers granted by amendments to the Gambling Act of 2018, has recently taken decisive action against illegal online gambling operators. Last week, Spelinspektionen announced the prohibition of a network of skin online gambling websites, which were primarily promoted on platforms like Twitch and YouTube.

While Spelinspektionen has yet to comment on Kulturnyheterna’s investigation, it has reiterated that advertising unlicensed gambling is illegal under Swedish law. Violators risk facing severe repercussions, including business bans and potential police intervention.

Similar action was also taken in Norway. Norway’s Gambling Authority declared a zero-tolerance stance towards social media platforms promoting online gambling content, enforcing a blackout on gambling advertising except for state-owned monopolies. The actions by the authority included warnings issued to Schpell.com and other entities.

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Brazil continues to move forward with its sports betting legislation despite still experiencing setbacks. As the coming of wagering to the Latin American country seems around the corner, Brazil continues to revise its rules on advertising.

Two days ago, the Chamber of Deputies’ Communication Committee greenlit bill 3915/2023, which seeks to restrict the promotion of unlicensed gambling by influencers and digital celebrities. This proposal would mitigate the negative impact of the black market on younger players, lawmakers believe.

Since unlicensed gambling operators rarely offer a sufficient level of player protection to their players, Brazilian legislators believe that its promotion may lead to significant losses. This, paired with the influence digital celebrities have on younger audiences, may lead to higher problem gambling rates among the Brazilian youth.

The New Rules Envision Strict Sanctions for Violators

As a result, the new bill prohibits digital influencers from promoting unregulated gambling products and companies. The same rules apply to overseas entities that target the local market. It covers content on social media, video-sharing platforms, livestreaming services and other digital platforms.

Under Bill 3915/2023, Brazil will require many of the big digital media platforms, such as Facebook and TikTok to join forces with the local authorities and ensure that inappropriate content is reported and taken down.

The bill envisions fines for entities that violate its rules. Companies that breach these promotion restrictions risk fines of up to 2% of their revenue to a maximum of $10.2 million (converted to USD). Under the bill, online influencers also risk a permanent ban.

As mentioned, the bill was already given a go-ahead by the Chamber of Deputies’ Communication Committee. Now, it is up to the Finance and Taxation Commission to decide whether the bill would go to the Constitution and Justice Commission. If approved by the two entities, bill 3915/2023 will be eligible for further evaluation and plenary vote.

In the meantime, sports betting in Brazil continues to be delayed amid disagreements and calls for ambitious amendments. While the country is in the later stages of discussing betting legislation, its future remains uncertain.

This means bad news for Entain, which was just forced to shut down its dotcom operations in unregulated markets. While the DPA says that the company may request its exit date to be postponed if there are reasonable grounds to consider that the process of regulation will be completed within a reasonable time of the exit, Brazil’s slower pace when it comes to legislation may be a setback to the company.

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J3STER.GG aims to marry the booming Esports industry with the captivating world of influencers, presenting gamers and viewers with a one-of-a-kind experience. The company’s platform enables viewers to place bets on the performance of Twitch streamers as they engage in intense and thrilling gameplay. Capitalizing on the massive audience base of influencers allows J3STER.GG to foster an enduring community, guaranteeing long-term success.

The Operator Offers an Innovative and Exciting Experience

Esports have gained significant momentum, attracting millions of fans worldwide and boasting impressive growth in recent years. J3STER.GG seeks to tap into this burgeoning market by presenting a novel approach to wagering. Instead of betting on professional teams, J3STER.GG’s platform centers on individual streamers, amplifying the excitement and offering a fresh wagering perspective.

With a focus on FPS games, J3STER.GG ensures that viewers can immerse themselves in the intense action of popular titles such as Call of Duty: Warzone and Valorant, which have captured the hearts of millions of gamers. The new platform aims to tap into fans’ excitement and give them a new way to engage with their favorite streamers.

Collaboration with influencers lies at the heart of J3STER.GG’s concept. Popular content creators have amassed vast followings, and their streams attract massive daily audiences. J3STER.GG empowers fans rooting for their favorite influencers to bet on their performance, contributing to an even more immersive and interactive experience.

Esports Wagering Holds Untapped Potential

The first two weeks of J3STER.GG’s beta release saw it collaborate with 40 players and generate nearly 10,000 GBP, demonstrating the potential of its business model. Company CEO Kevin Des Lauriers was excited about the upcoming 1 September official release, noting that the initial test period had provided significant insights and opportunities. 

It is clear that players enjoy the interactivity of setting challenges for streamers, whilst content creators have a reliable avenue for monetization.

Kevin Des Lauriers

J3STER.GG’s upcoming release coincides with the rising interest regarding wagering opportunities in the Esports industry. Several high-profile companies have rushed to the new opportunities, hoping to resonate with new-gen bettors and acquire an early market advantage. However, increasing wagering opportunities cause significant integrity concerns, mirroring traditional sports. 

As the Esports betting industry evolves, it has to overcome new and familiar challenges to deliver an engaging, safe, and fair wagering experience for fans. J3STER.GG stands at the forefront of that revolution, promising an immersive and interactive journey for gaming enthusiasts and betting enthusiasts. As the platform evolves and the full launch draws near, it may reshape the future of the gaming and betting landscape.

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It’s no secret that influencers are becoming increasingly important for brands in any industry, the iGaming industry included. Whether you think this is true or not, there is something special about influencers. Jimmy Donaldson, perhaps more known as Mr Beast, is one of the most known influencers today. Surpassing over 120 million subscribers on YouTube, and with millions of views on every video, he recently expressed the following in Forbes 30 Under 30.

People just don’t understand the influence a lot of creators have

Mr. Beast – Forbes 30 under 30, 2022

Influencers, the content creators, indeed have a huge impact, and that impact is only growing. Research from IZEA from 2022, Trust in Influencer Marketing, shows that over 60% of consumers trust influencer advice over celebrity endorsements and that influencers are the number one reason to try out new products. With their reach and popularity, they are in a strong position to drive brand and product awareness and create a top-of[1]mind effect among their audiences.

Leveraging influencers to drive visibility, popularity, and engagement is important in the iGaming industry. This is also why several companies, operators and providers focus more on influencers today. The effect of working with influencers can be highly successful, as they can engage with their audiences on a different level compared to traditional marketing.

Influencers in the iGaming industry, also known as casino streamers, stem back to early 2016 on Twitch, the world’s largest live-streaming platform, owned by Amazon. Since the birth of casino streaming, it has had a massive increase and hit new records in total streamers and viewership, year by year. In 2022, the Casinolytics AI has tracked almost 17 billion minutes of casino game content brand reach on live-streaming platforms like Twitch and YouTube – an increase of over 70% compared with 2021.

The growth in casino streaming can be attributed to streamers making gambling content more entertaining, engaging and fun. This creates an environment where viewers can interact with the community and the streamer, which amplifies the excitement. In other words, when viewers enjoy watching streamers playing games, the odds of them trying it out increase.

The Casinolytics AI has tracked almost 17 billion minutes of casino game content brand reach in 2022

Casinolytics

How did casino streaming become so popular? And why do people choose it over binge-watching Netflix, playing PUBG, or playing games on their mobile? The main reason for the popularity of casino games lies in the beauty of random number generation (RNG), which creates unexpected reactions and memorable moments for the community. Since nobody knows when things can happen, this attracts different types of viewers. Not only the ones that want to come and go whenever it suits them, but also the very dedicated ones that are there for the community and who spend hours and hours watching a streamer.

Today, it is inevitable that the power of influencers is transforming the iGaming industry and creating a whole new opportunity for companies to make their products stand out in the market. Just stop for a minute, and imagine that over 100,000 people are seeing your brand on Twitch and YouTube at this very moment.

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