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By Sanya Burgess, digital investigations journalist



The jiggling breasts of three bikini-clad cartoon women bounce around on my
screen. 

They freeze just in time for banners to zip across the display announcing what’s
been won.





Gold coins spurt out. Neon stars whizz around. Sparkly noises tinkle over what
sounds like a bootleg rendition of the Super Mario soundtrack.

Then, a celebratory message flashes up.

> "Eight super mega fantastic free spins!” 

Your browser does not support this video

British influencer Haddzy, who broadcasts from Malta, streams himself playing on
a crypto casino game. Credit: Haddzy/Kick

British influencer Haddzy, who broadcasts from Malta, streams himself playing on
a crypto casino game. Credit: Haddzy/Kick

I’m watching a stranger play an online slot machine game. The experience is so
surreal it causes me to burst out laughing. Then I find myself fighting the urge
to watch more.

It all started when a similar video, already watched hundreds of thousands of
times, popped up on my social media feed. I was intrigued. It's not like crowds
gather around punters chancing it on slot machines in pubs. Nor are there queues
of spectators spilling out of betting shops.

I was about to write it off as just another odd internet trend when I saw a
familiar face: Drake, one of the world’s most successful music artists. 

The rapper was at a huge mansion, drinking and gambling with friends. Golden
fireworks – real, not virtual – exploded into the night sky as he celebrated
winning an incredible $6.6m in a single bet on his lucky number.

“Any time we hit 11, we’re going crazy!”, he told viewers at home. 



Why was one of the most famous people in the world streaming himself gambling
online?  

The answer lies in the controversial world of crypto casinos – where beneath the
neon lights and high stakes celebrations, lies a web of secrets.

Drake’s promotion of these casinos is legal. But I've uncovered some troubling
practices in this online community.

Some influencers are playing with ‘fake’ money provided to them by their casino
sponsor and may also be breaking British gambling laws by promoting and showing
how to access these sites, which are illegal in this country.

Casinos found to be operating in the UK may also be breaking the law.

The UK’s gambling regulator, the Gambling Commission, is now investigating my
findings. And a leading charity says what has been uncovered is a clear breach
of UK laws and is "shocking".

The government has praised our investigation. Health secretary, Steve Barclay,
said it was to be "commended" and that his colleagues would be looking into its
findings.






IMAGE CAPTIONS



Drake wasn’t playing on a standard online casino.  

The megastar, along with some of the internet’s biggest personalities, is one of
the faces of a new era of gambling: crypto casinos.

Crypto casinos are similar to ‘normal’ online casinos, offering virtual versions
of popular games like slot machines. The difference is they use digital
currencies: Players convert pounds, euros and dollars into virtual cash such as
bitcoin to gamble with.  

This type of casino is illegal in the UK, with the Gambling Commission taking a
hardline stance against any operator that accepts crypto currency as a direct
method of payment. 

There are more than 500 English-language crypto casinos worldwide.

Stake - one of the biggest players in the crypto casino world - has a UK
regulated site. It has also sponsored Everton, Watford and Gillingham football
clubs, as well as the Alfa Romeo F1 team.




IMAGE CAPTIONS



Drake wasn’t playing on a standard online casino.  

The megastar, along with some of the internet’s biggest personalities, is one of
the faces of a new era of gambling: crypto casinos.

Crypto casinos are similar to ‘normal’ online casinos, offering virtual versions
of popular games like slot machines. The difference is they use digital
currencies: Players convert pounds, euros and dollars into virtual cash such as
bitcoin to gamble with.  

This type of casino is illegal in the UK, with the Gambling Commission taking a
hardline stance against any operator that accepts crypto currency as a direct
method of payment. 

There are more than 500 English-language crypto casinos worldwide.

Stake - one of the biggest players in the crypto casino world - has a UK
regulated site. It has also sponsored Everton, Watford and Gillingham football
clubs, as well as the Alfa Romeo F1 team.




IMAGE CAPTIONS





THE GAMBLING 'HIT'

HasanAbi, 32, is one of the most popular streamers out there.

The American is known for his left-wing political discussions on current events,
but he also dabbles in gaming.

> "You're watching people gamble away their parents' entire life savings."

He turned down a $500,000 contract to play poker for an online casino. I asked
him about the appeal of these gambling streams. 

 “The excitement is built-in... You're watching people gamble away their
parents' entire life savings in one hit.” 




IMAGE CAPTIONS



Crypto casinos have risen in popularity thanks to content creators streaming
themselves gambling on them.   

One streamer, xQc, has a combined social media following of almost 17 million.

Around 70% (11.9 million) of them subscribe to his channel on the video game
streaming site, Twitch. 

In one recent stream, he threw down a bet of almost $190,000 (£150,000) in one
go – and that’s not even a record-breaking amount in this world.

In that same four-hour stream, he started with more than $700,000 (£550,000) -
which dropped to less than $200 (£160) - before he unhappily logged off with
just $27,000 (£21,200). 

The money is wagered almost carelessly. There is a concept called autobetting –
which is where a streamer will get the computer to place bets for them while
they go to the loo or have lunch. 

They return to find out if they’ve won – or lost - their money. 



Streamers broadcast themselves playing on crypto casinos on sites like Twitch
and Kick

Streamers broadcast themselves playing on crypto casinos on sites like Twitch
and Kick

















THE 'GOLDEN GOOSE'

Gambling can “wreck lives, impact families and communities, and even lead to
suicide in extreme cases,” warns a government paper reviewing Britain’s gambling
rules.  

Around 300,000 people in the UK are ‘problem gamblers’, it reports, meaning
their activities "compromise, disrupt or damage family, personal or recreational
pursuits".

A further 1.8m people have "elevated levels of risk”.  

Campaigners warn this is an underestimation, with a 2020 YouGov survey finding
that 13% of the population (around 6.8m people) were suffering the negative
impacts of gambling. 

The rise of streamers gambling on crypto casinos is a concern for health workers
like Matt Gaskell. He is the clinical lead for the NHS Northern Gambling Service
which supports people struggling with a gambling addiction. 

> "The slot machine is the golden goose of the gambling industry."

While there’s evidence that watching these streams can help addicts satisfy
cravings without using their own money, Gaskell warns there is a risk of a
relapse because the sounds and images can trigger “physical and psychological
reactions” which could end up driving someone back to the casino.

"The slot machine is the golden goose of the gambling industry. Data from the
Gambling Commission suggests that 45% of players will be harmed by playing slot
machines."

Online slot machines are designed to make the gambler lose – for example, this
game has a return of 96.38%. Put £100 in, and you’re likely to only get £96.38
back.



The 'theoretical payout' for virtual slot machine can be found by tapping the
game's information button

The 'theoretical payout' for virtual slot machine can be found by tapping the
game's information button

Streamers broadcasting themselves gambling on crypto casinos is already
controversial. 

One of the major streaming sites, Twitch, told Sky News they've gone to
"significant lengths to reduce gambling content on Twitch, and have banned a
number of gambling sites from our service, including Stake.com".

Twitch reports that gambling viewership on their site has dropped by around 75%
and they have banned more sites since. But, at around the same time, a Stake
co-founder set up his own rival streaming site, Kick.com, which features the
casino.

Launched in October 2022, Kick reports it hit 10m users in July.

A number of prominent gambling streamers have been linked to Stake, including
Trainwreck – who has 3.3 million collective followers – and is also a Kick
co-founder.  







IMAGE CAPTIONS



While there are warnings to ‘gamble responsibly’ on these streams – there are
also promotional codes. 

Streamers typically get a cut of bets made by anyone who uses these codes -
which effectively means they are incentivised to convert viewers into
gamblers.   

And many may be making the decision to gamble – without all the facts.





The use of house money, or 'fake' money as it is known, is an open secret in the
crypto casino world.

At first glance, it looks as though content creators are gambling with their own
cash - but often the money being wagered is provided by the casino.

It's a contentious subject. Only a handful of streamers are transparent about
what money they play with – advertising when they are making wagers from their
own pocket as “raw” bets.





Stake.com denies any of its partnered streamers play with fake money.

But for Matt Gaskell, the online crypto casino world is akin to the "Wild West".

“It looks to me highly misleading," he says.

"I hope the government and Gambling Commission will take a closer look at it
sooner rather than later.” 

Responding to the findings of our investigation, Health Secretary, Steve
Barclay, said: "It's an extremely important investigation that you've led.

> "I hope the government and Gambling Commission will take a closer look at it
> sooner rather than later.” 

"The fact that we've opened seven additional gambling addiction centres this
summer, points to the wider challenge that we have as a country in terms of
gambling addiction.



"The government has a white paper looking at how we better regulate some of the
websites that facilitate this behaviour. And I think there's much that's come
out of the investigation that I know colleagues will be looking at."

A government spokesperson had previously told us they would be taking steps to
strengthen the regulatory powers of the Gambling Commission.

“This includes giving it new powers to take down or block illegal gambling
sites, and giving it the power to adjust its fees to respond to new challenges,"
they said.

But it's not just celebrities and influencers who are driving this new gambling
craze. I approached dozens of people who’ve done streaming deals with casinos,
including some content creators from the UK, to find out more. 

Two people, who we are calling David and Joe, say they gambled with money given
to them by casinos.

I also spoke to someone we are calling Zach who got sucked in just from watching
these streams.

All three say their experiences ruined their lives. 




IMAGE CAPTIONS




'I LOST HALF-A-MILLION DOLLARS, BUT I KEPT PLAYING'




DAVID*, IN HIS 30s

I played cards and stuff like that but I never felt the true power of addiction.

The casino gave me $75,000 in-game credits to play with per stream which was
pretty good. But I just couldn't stop.

It turned me into a selfish person and caused a lot of pain to my friends and
family.



Picture by Rebecca Hendin

Picture by Rebecca Hendin

I lost almost half a million dollars, but I kept playing. It was OK because I
was sponsored but I still felt sick to my stomach.

There’s no duty of care from these companies. When I told them I had developed a
gambling addiction, they cancelled my account. I lost the money I had on there
before I could cash it out.

I see more and more gambling adverts - a pandemic of addiction is on the
horizon.




IMAGE CAPTIONS




'ALL THAT STUFF ABOUT "RESPONSIBLE GAMBLING" IS JUST BULLSHIT'



JOE*, IN HIS 20s

The casino gave me a fixed contract but also said, "we're going to put fake
money in your balance, gamble it away and do those fake reactions [on the
stream]".

A lot of streamers have similar agreements.

These casinos can get away with it because it's all crypto-based.



Picture by Rebecca Hendin

Picture by Rebecca Hendin

But all gambling companies are dodgy [because] in a way they're stealing
people's money. They know it's going to cause an illness. All that stuff about
‘responsible gambling’ is just bullshit.

Even when I was in debt and at rock bottom, I would still gamble. I had suicidal
thoughts – I just wanted an escape.




IMAGE CAPTIONS



There’s a lot of money on the line for streamers.  

Content creators can earn money from the website they stream on as well as
negotiating deals with casinos. 

Each streamer’s deal is different and can include a partnership fee and cash
bonuses.

It's rare for figures to be published.

Trainwreck, one of the biggest names in this world, claimed last year to have
been paid $360m (£290m) across 16 months to stream himself gambling online. 

It’s lucrative enough for some UK streamers to have been tempted to relocate
abroad to places like Malta to be able to play these casinos legally.




IMAGE CAPTIONS




INSIDE THE BEEF HOUSE

One group of Malta-based influencers, called ClassyBeef, has a rota. They film
themselves gambling six days a week – mostly from 8am to 3am. That’s 19 hours a
day.  



A screenshot of ClassyBeef's streaming schedule

A screenshot of ClassyBeef's streaming schedule

The six men who make up the rota all come from Europe and the US. Their
Instagram account suggests they live together in what they call the ‘Beef House’
- a luxury pad in Malta, complete with pool and sea views.

Your browser does not support this video

Some of the videos shared on Classybeef's Instagram story under the name
'BEEFHOUSE'. Pic: @classybeefofficial

Some of the videos shared on Classybeef's Instagram story under the name
'BEEFHOUSE'. Pic: @classybeefofficial

They throw parties replete with booze, girls in bikinis, and big banners
emblazoned with the Stake.com logo. 




IMAGE CAPTIONS




'I LOST £10,000 IN TWO HOURS'



ZACH*, IN HIS 30s

I hadn't gambled for four years. Then I started being pushed videos of these
livestreams on social media.

In one video the person won $5m (£3.9m) supposedly in one go.  I ended up buying
a crypto coin. A single deposit quickly turned into 10.  

When I found out they were playing with fake money, I realised it was just an
advert.





You've got no protection. I can't get in touch with the bank to say I found a
way around the bank block because it's not technically legal.  

I wiped out years of effort in a few hours. It was soul destroying. 




IMAGE CAPTIONS



LAW BREAKERS?

Joe and Zach were both in the UK when they accessed unregulated crypto casinos. 

Richard Williams, a leading gambling lawyer, sheds light on the consequences.



Richard Williams, a partner at Keystone Law

Richard Williams, a partner at Keystone Law

“It's an offence to provide facilities for gambling when you don't have a
licence.

"The operator of the site would potentially be subject to criminal sanctions and
also potentially the people behind that operator (such as senior staff)."  

The penalties for these offences include disrupting advertising revenues and
stopping the casino from taking payment from major credit card providers,
although this has a limited effect with casinos that take cryptocurrencies. 

There are measures in place. Many of the sites are blocked or re-routed if you
try to access them from this country. For example, going on Stake.com takes you
to their UK site.



The homepage for Stake.com's UK-regulated website

The homepage for Stake.com's UK-regulated website

This regulated branch of their casino does not accept cryptocurrencies, and,
unlike their main site, it enforces safety measures, such as wager caps and time
limits for gamblers in Britain. Stake.com has not been found to have broken any
UK laws.

I've found evidence an online loophole is being exploited that means some
streamers may be breaking the law in the UK and there are questions over whether
casinos are doing enough to monitor this issue.

> "I said I can't go on because it says it's restricted in my country and the
> casino were like use [this software], just don't tell your viewers."

British streamer, Joe, claims he was given instructions by the casino that was
sponsoring him on how to bypass measures designed to prevent users in the UK
accessing the site.

"I said I can't go on because it says it's restricted in my country and the
casino were like use [this software], just don't tell your viewers."

Richard Williams explains what the law says about this. 

“If they're suggesting that [software to avoid geo-blocks] is used, then they
are acknowledging that the customer is going to be accessing a website which
wouldn't be lawful to access in the UK,” he explains.

Williams adds if a streamer with a UK audience publicises this software as a way
to access these off-limit sites, they could be seen as advertising unlawful
gambling which is also an offence. 




IMAGE CAPTIONS




ARMED WITH THIS INFORMATION, I WENT ONLINE AND QUICKLY NOTICED...




....SOME STREAMERS ADVERTISING CERTAIN CRYPTO-CASINOS AS 'FRIENDLY' TO THIS
TRICK ON THEIR SOCIAL CHANNELS




SOME EVEN OFFER STEP-BY-STEP INSTRUCTIONS AS WELL AS PERSONAL RECOMMENDATIONS
FOR THIS SOFTWARE, LIKE THIS...




THESE PROMOTIONS COME FROM STREAMERS OFFERING TIPS - NOT SOMETHING ENDORSED BY
STAKE.COM










BEING GODZILLA

The content creators are openly promoting this software - what of the casinos?

They say not to use this loophole but I wanted to see if I could make a UK
account using the advice I’d seen streamers share. In theory, I shouldn’t be
able to access these unregulated casinos from the UK and certainly not with a
British postal address.

I made working accounts on four sites. I was surprised to find three of them
required no address or accepted a UK one. 

One of the regions where the website is accessible is Japan. I was able to make
an account using my UK driving licence and, amazingly, put my address as that of
a Godzilla statue in Tokyo.



The Godzilla statue in Tokyo, Japan

The Godzilla statue in Tokyo, Japan

I had to provide ID and used my UK driving licence. Within minutes my account
was active and theoretically I could have started gambling. One hour later the
account was blocked, seemingly because of my photo identification. 

Stake.com told us they are “fully compliant with gambling legislation in the UK,
and do "not accept UK customers".

They say: "It is not possible to gamble on Stake.com from the UK" and they have
industry-leading requirements and tools in place, including, they say, to
monitor the use of the software we tested.

They added: "In this case, a fraudulent attempt to circumvent our KYC [Know Your
Customer identification measures] procedures failed and the account was
suspended, as it should be, showing that our procedures are effective and
compliant with industry standard."




IMAGE CAPTIONS



While I can’t track how many Brits are playing on crypto casinos, the slots page
on streaming site Kick.com has been visited more than 80,000 times from UK
devices in August alone, according to figures provided to Sky News from
SimilarWeb.   

And worldwide, more people have visited Stake.com this year than many major UK
gambling sites – with the UK the largest gambling market in Europe and the
fifth-largest in the world.

Crypto casino Stake.com had more visits than six of the UK's biggest betting
sites.

The chart shows worldwide hits to the websites of comparable audience size
between January and August this year. In comparison, Bet365 recorded more than
1.5bn hits. The figures were also provided to Sky News from SimilarWeb.   



I filed a Freedom of Information request with the Gambling Commission and found
the number of complaints submitted to the regulator regarding crypto gambling
websites has increased from eight to 20.

I took my findings to the regulatory body, who said they will investigate what
I’ve uncovered.  

Their spokesperson said: “When we become aware of affiliates promoting illegal
gambling sites and encouraging the use of software to bypass geo-blocking we
will take action.” 



Will Prochaska

Will Prochaska

Will Prochaska works for Gambling With Lives, a charity that supports families
bereaved by gambling-related suicide. He believes our revelations show there’s
been a “clear breach” of gambling laws.

“The findings have shocked but not surprised me because the business model of
the gambling industry is based on addiction.” 

He also branded Stake.com’s promotional use of celebrities and sport sponsorship
as “deeply immoral,” highlighting the fact it was “designed to attract a young
audience who are particularly vulnerable to being drawn into addiction by the
gambling industry”. 

I asked the UK’s Advertising Standards Agency about these promotions. They said:
“Anyone advertising [crypto casinos] directly to British consumers is breaking
the law.  

“We don’t regulate ads for illegal products or services and we believe that
responsibility in this case would revert to the Gambling Commission.” 




IMAGE CAPTIONS



A SPIRAL OF ADDICTION

Internet celebrity, HasanAbi, thinks that streamers should also take some
responsibility for promoting this type of activity. 

“Every streamer recognises deep down in their hearts that they have an element
of responsibility."

If the audience see streamers they admire acting a certain way they are likely
to think it is “acceptable and recreate it,” he says.  

> “Every streamer recognises deep down in their hearts that they have an element
> of responsibility."

Meanwhile, streamer David is still struggling with the spiral of his addiction
and has a stark warning to people either side of the screen: 

“I'm going through one of the toughest struggles in life. I wouldn’t wish this
on my worst enemy.    

“There might be people watching that are predisposed to an addiction and they
don't even know it. That's where the real danger comes in.  

“If you think this can't happen to you, it can. Be careful.” 




IMAGE CAPTIONS




RESPONSES TO INVESTIGATION


I took our findings to Stake, who did not respond directly to our questions but
said: “Stake is grateful for the material provided. We are currently
investigating and will act swiftly on any contravention of our terms.”

Stake also told us their “product for UK users, Stake.uk.com, offers a fully
regulated, fun and interactive gambling experience. We have received no
enquiries from the Gambling Commission in relation to this broadcast.

“Stake is committed to responsible gambling and takes the safety of its users
very seriously.”

British streamer Haddzy told Sky News he never played on Stake in the UK and
uses the site legally from Malta.

He added: "I cannot control who sees and or watches the content" but that he is
working to make sure the right content is only seen by the right people.

He also said: "I very much enjoy doing my job and the good it brings to people,
I’ve actively changed many lives over the last two and a half years, good far
out-weighing the bad. I do my best to do everything by the book and within
regulations."

Other streamers, Kick, and the teams sponsored by Stake did not comment when
approached for a response.

And what about Drake? The most famous face of crypto casinos. The questions
facing him are the same as those facing the whole industry:

There are a lot of unknowns. Is it true he struck a multi-million deal with the
casino?

Does he play with his own money?

What does he think about issues of addiction affecting his fellow streamers and
their viewers?

We asked him but he didn’t respond to our questions.

*Names have been changed 

If you’ve had a problem with gambling contact GAMSTOP on 0800 138 6518 or go to
gamstop.co.uk

For any issues related to suicide or mental health contact the Samaritans for
help on 116 123 or email jo@samaritans.org in the UK. In the US, call the
Samaritans branch in your area or 1 (800) 273-TALK



--------------------------------------------------------------------------------


CREDITS

Writing and research: Sanya Burgess, digital investigations journalist

Senior producer and video editor: Mickey Carroll

Design and illustrations: Arianne Cantwell, designer, and Rebecca Hendin,
illustrator

Editors: Chris Howard, editor, Data and Forensics, Serena Kutchinsky, assistant
editor, Premium Content, Natasha Muktarsingh, assistant editor, Data and
Forensics

Photos and videos: Haddzy, xQc, Moe TV, Trainwreck, Classybeef, Twitch, Kick


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