When a streamer gets banned from Twitch, there is usually little information as to why a ban was handed out. The mystery behind Dr Disrespect's ban from Twitch, for example, still hasn't been solved. But former Twitch streamer James 'Phantoml0rd' Vargas, who was banned from the platform in 2016, has won a lawsuit against Twitch after unproven fraud allegations led to a permanent ban.

Vargas made a name for himself streaming Counter-Strike: Global Offensive, and in particular CS:GO gambling, where players can bet in-game skins on professional matches or on games of chance (like using a roulette wheel). Certain skins in CS:GO are limited-time items, and as such have a high value on secondary marketplaces, and diving into the seedy underbelly of CS:GO can lead to dark places. Allegations of match fixing in CS:GO are rampant, and with so much money on the line with folks wagering skins, some are getting very rich off the whole practice.

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Vargas was accused in 2016 of running a CS:GO website and actively promoting it despite not clarifying that he was the owner of the site. However, Twitch banned Vargas without proof of these allegations of fraud, and this is what is at the heart of the lawsuit the former streamer won. Seeking to clear his name, and financial compensation for being banned from the platform, Vargas filed the lawsuit against Twitch and was found to be in the right. He was awarded $20,702.34 in damages, a far cry from the $35 million he was seeking.

With millions of viewers and thousands upon thousands of streamers, Twitch's prominent place online makes it a target for lawsuits, with the streaming site facing a lawsuit last summer regarding "scantily clad" female streamers. For Vargas, it seems the impetus for the lawsuit was in clearing his name, after being forced off the platform unceremoniously and without any actual evidence of wrongdoing.

While Vargas has been cleared, the lawsuit does bring back to the fore some of the shadier practices in the CS:GO scene. The entire gambling economy continues unabated, and while direct links between streamers and gambling websites for the game seem to have dropped off, the practice is ethically questionable. CS:GO also has a history of cheaters in its top ranks, with a number of big names banned over the years.

The lawsuit could potentially open the door to other banned streamers filing against Twitch for wrongful bans. That, or Twitch might start to be more forthcoming with reasons why permanent bans are handed out. Providing exactly where a streamer breached Terms of Service could help to prevent any similar litigation, like Vargas's case here.

Counter-Strike: Global Offensive is available for PC.

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Source: Dexerto