The European Union’s top court ruled on Thursday that YouTube may be liable for content creators posting illegal gambling promotions. The streaming platform may be held accountable if it is viewed as approving the content and benefiting from the revenue generated by the videos.
Italian communications regulator, AGCOM, fined Google, YouTube’s parent company. €750,000 (about $860,000). The fine related to YouTube videos that promoted gambling websites and encouraged viewers of any age to submit videos of their winnings in exchange for cash rewards.
Gambling advertising has been banned in Italy since 2018.
Google is challenging the ruling, arguing that it should not be held liable for its creators’ content.
It warned that requiring YouTube to inspect uploaded videos would amount to censorship and undermine both users’ freedom of expression and its ability to provide cross-border online services.
Judges Partly Side With Google
The court partly agreed. “The activity of online hosting is not intrinsically linked to that gambling,” the judges wrote in the judgment.
However, streaming platforms can be held accountable if they knowingly allow forbidden content to appear.
“Where the activity of the operator of an online platform results in it knowing the essential content uploaded by a user to that platform, it cannot rely on the exemption from liability,” the court said.
Streaming Platforms Divided Over Gambling Content
Some streaming platforms explicitly prohibit any gambling content. Twitch banned gambling promotions in October 2022. Kick, meanwhile, the platform run by online casino Stake’s owners, actively promotes gambling content.
The difference has deepened the friction between the two companies, which escalated further earlier this year over the acceptance of bots.
YouTube permits gambling-related content, but it has become significantly stricter in recent years. The platform generally allows content that promotes regulated platforms, but restricts any content that directs viewers to unapproved gambling websites or apps.
Google recently updated its policy to also ban ads for prediction markets in Ohio and Nevada, where regulators are pushing to prohibit operators.
Ruling’s Impact On Esports
The ruling could have a significant impact on esports teams, particularly those with gambling sponsors that primarily operate under offshore licenses.
Teams livestreaming content on YouTube and including promos for their sponsors could soon find their videos restricted. For example, Team Vitality is sponsored by Stake, several teams promote 1xbet, and Mouz promotes Fonbet.
BLAST has also signed a deal with Polymarket, which is banned in many countries worldwide, including Italy.
If platforms are forced to block content that promotes unlicensed gambling companies, these lucrative sponsorship deals may soon disappear.
