Twitch's stand on monetization and money matches

we are building a web platform for money matches using Twitch api and want to use extensions as well.

what is a money match?
it basically is a binding contract with two or more player to fulfil a goal in a game. if a player does not fulfill it, he loses money to the other player(s).
the goal can be to do “something” in a game (killstreak, achievements etc) or to simply beat the other player(s).
it’s basically a real money tournament with funding by the participants.
money matches are popular among fighting games etc, anything with a heavy competional aspect:
https://www.ssbwiki.com/money_match

we also have been talking to a lot of streamers during twitch con and there clearly seems to be interest in this, many people do these games already anyway using PayPal.

yet I could not get a real answer on how twitch thinks about this, because it feels like money matches belong somewhere in the Grey area between gambling (not encouraged by twitch) and tournaments (involved real money from the very beginning of esports on and are a fundamental and accepted part of esports).

thankfully from a legal/regulatory perspective the matter is a little more clear :
if money matches involve skill as the dominant factor( true for most games played and streamed on twitch) , they are not considered and regulated as betting/gambling by the majority of the US states (allthough some states forbid any cash games at all) and most European countries.

furthermore they could be a fun way for the average player to enjoy some of the “esports kool-aid” as well as streamers to engage with their viewers.

on the other hand it is understandable for twitch to be sensitive about anything real money related with gaming because of the whole counterstrike go skin Desaster.

tl;dr:
money matches are not to be confused with betting, but are rather small tournaments with real money funded by the players.

we feel there should be an open discussion about this matter, as we devs don’t want to develop a product twitch does not want around!

Not a lawyer but, gambling or not, betting is highly regulated in many places.

yes you are right, I should maybe make it more clear that money matches are not betting by any means.

because technically a money match is a user funded tournament, and tournaments are not gambling either.

Might need to clarify what exactly they are then.

1 Like

yes, working on that, editing original post, also here so no need to read full post again :slight_smile:

what is a money match?
it basically is a binding contract with two or more player to fulfil a goal in a game. if a player does not fulfill it, he loses money to the other player(s).
the goal can be to do “something” in a game (killstreak, achievements etc) or to simply beat the other player(s).
it’s basically a real money tournament with funding by the participants.
money matches are popular among fighting games etc, anything with a heavy competional aspect:
https://www.ssbwiki.com/money_match

I would suggest reviewing the Extensions guidelines and policies as a starting point: https://dev.twitch.tv/docs/extensions#guidelines-and-policies

Extensions may not transact or encourage the transacting of monetary exchange in relation to any non-Twitch/Amazon commerce instruments

Hi. What about social betting app, where users bet for funny money and can buy credits to continue playing (Zynga style)?

I do not believe that a formal monetisation policy for Extensions has yet been released. That being said, I would be incredibly surprised if gambling was allowed.