Twitch Just Lost A $20K Lawsuit Against A Streamer Who Copped A Lifetime Ban

Twitch Just Lost A $20K Lawsuit Against A Streamer Who Copped A Lifetime Ban

Former Twitch streamer James ‘PhantomL0rd’ Vargas has won a lawsuit against the streaming giant after being banned from the platform in 2016.

Vargas was banned from the platform for a Counter Strike: Global Offensive (CS:GO) gambling stream in 2016. Although he claims he never broke any rules or policies during his streams, Twitch moved to issue a lifetime ban.

The specific reason for the ban was never revealed, with Twitch only citing that the channel was closed “due to terms of service violations.”

While it has been suggested that Vargas was the owner of a CS:GO gambling site that he regularly promoted on his channel, it was never proven.

““I WONNNNNNNNNNNNN!!! I WON MY LAWSUIT VS TWITCH ON ALL
COUNTS!!!!! Twitch LOST EVERYTHING, including the fraud claim against me for the CSGO Shuffle allegations!!! This is a win for ALL streamers! Twitch can’t bully, lie & treat streamers unfairly the way they have for years!!!” he tweeted.

The lengthy court battle began back in 2019, with Varga seeking $35 million in damages for the ban.

Months after Vargas’ lawsuit, Twitch filed a counter-suit in which it claimed Vargas had been given multiple warnings in the year prior to his ban.

“He streamed promotions for a gambling website that (1) he had an undisclosed financial interest in, (2) he used to rig jackpots in his favor against users he gained from Twitch, and (3) operated in contravention of the terms of the underlying game’s publisher and was potentially illegal,” Twitch said in the counter-suit.

During the court proceedings, Twitch’s lawyers requested a maximum damage amount of $US50,000, however, this was denied by the court.

Ultimately, Vargas only received $US20,720.34 in damages, which is significantly less than he was hoping for.

At the time of the ban, Vargas was a successful streamer on the platform, boasting a record of 143,000 concurrent viewers.

Twitch is yet to release a statement on the verdict.

Comments

  • doesn’t change the fact he is still a dickhead who lied about his links to the skin gambling company he was using on stream.

    Phantoml0rd is and always will be a dickhead.

      • Damages for a breach of contract isn’t exactly new but it possibly opens the door for Twitch to be more transparent with its bans.

        • Indeed. This is one of those things that I will stand by those people with. If they’re banned, they do deserve transparency over why they’re banned. Too often, it’s happened where they’re banned for strange or unclear reasons. This will hopefully set that precedent and make Twitch, and other companies, be that little bit more clear with their reasoning. I’m all *for* banning people who are breaking rules and being idiots, but also for said transparency.

  • The law really screwed up the CSGO gambling cases. The FCC grabbed them first for advertising fraud and dropped the charges and no one followed up on the illegal gambling (operating without permits or selling to minors) which was violation of multiple state competition laws. Despite all the political pressure they walked away Scott free, they didnt even bother to follow the money or business ownership.

    • It has a lot to do with the fact it was their first offence and compared the breadth of the things the FCC usually chases their infraction was minor.

      While they weren’t punished as much as we wanted, They are on a severely tight leash. If they fucked up again the FCC would come down hard.

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