Twitch isn't the most transparent platform when it comes to revealing the reason for a streamer ban. For example, the mystery behind Dr. Disrespect's ban still remains. However, in the case of the former Twitch streamer James 'Phantoml0rd' Vargas, Twitch banned him in 2016 for fraud allegations. The streamer has just won his lawsuit against the streaming platform.
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Vargas was quite big of a name in the Counter-Strike: Global Offensive community, particularly CS:GO gambling. Here, players bet in-game skins on professional matches or on games of chance (like using a roulette wheel). Winners take all.
Certain skins in CS:GO are only available in a certain time frame. Therefore, they have a high value on secondary marketplaces. And where there's potential to make a profit, there's gambling. Dive deep into the seedy underbelly of CS:GO and you will find yourself in a gritty dark place.
With so much money on the line for players who bet their skins on, some are getting very wealthy. Vargas was probably one of them. He was accused in 2016 of running a CS:GO website and actively promoting it though not revealing that he owned the site.
Twitch banned Vargas for the same reason, but without any proof of these allegations of fraud. And this is also what helps him won the lawsuit just a few days ago. The streamer seeks to clear his name, along with financial compensation. Though Vargas was found to be in the right of the lawsuit, he only receives $20,702.34 in damages. Initially, he asked for $35 million.
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With millions of daily views and growing thousands of streamers, Twitch has become a prominent target for lawsuits. The streaming platform faced a "scantily clad" female streamers lawsuit just last summer.
In the case of Vargas, he finally cleared his name after being kicked out of the site without any actual evidence of wrongdoing. However, his lawsuit also brought back some shady practices surrounding the popular FPS game.
The whole CS:GO gambling economy is still running strong regardless. The question of the direct links between streamers and gambling websites remains. And let's not forget the big-time cheaters in the CS:GO scene, who managed to get to the very top.
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