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The highest court of the European Union has ruled that YouTube could potentially be held responsible for illegal gambling promotions posted by content creators. This ruling suggests that if YouTube benefits from the revenue generated by such content and is seen as endorsing it, it could face liability.
Recently, the Italian communications regulator, AGCOM, imposed a fine of €750,000 (approximately $860,000) on Google, YouTube’s parent company. This fine was related to videos on YouTube that promoted gambling websites and encouraged viewers of any age to share videos of their winnings in exchange for cash rewards.
Italy has banned gambling advertising since 2018.
Google is challenging this ruling, arguing that it should not be held accountable for the content created by its users.
The company has warned that requiring YouTube to monitor uploaded videos could lead to censorship, impacting users’ freedom of expression and hindering its ability to offer online services across borders.
Judges Partially Support Google’s Position
The court partially agreed with Google’s stance, stating that “the activity of online hosting is not inherently linked to gambling.”
However, the court emphasized that streaming platforms could be held responsible if they knowingly allow prohibited content to be displayed.
According to the court, if a platform operator is aware of the essential content uploaded by users and allows it to remain, they cannot claim exemption from liability.
Divergence Among Streaming Platforms Regarding Gambling Content
While some streaming platforms explicitly prohibit gambling-related content, others, like Twitch, have banned gambling promotions. On the flip side, platforms like Kick, associated with online casino Stake, actively promote such content.
This difference in approach has escalated tensions between these platforms, particularly concerning issues like the use of bots.
YouTube allows gambling-related content but has enforced stricter guidelines in recent times. The platform typically permits content that promotes regulated platforms but restricts any that direct users to unapproved gambling sites or apps.
Recently, Google updated its policy to ban ads for prediction markets in Ohio and Nevada, where authorities are moving to outlaw operators.
Impact of the Ruling on Esports
The court’s decision could significantly affect esports teams, especially those with gambling sponsors operating primarily under offshore licenses.
Teams that livestream content on YouTube and include promotions for their gambling sponsors may soon face restrictions on their videos. For instance, Team Vitality is sponsored by Stake, several teams promote 1xbet, and Mouz endorses Fonbet.
Additionally, BLAST has partnered with Polymarket, which is banned in numerous countries, including Italy.
If platforms are compelled to block content endorsing unlicensed gambling companies, these lucrative sponsorship deals could vanish in the near future.