Itch.io, a popular alternative platform for indie game developers, recently began re-indexing free games with adult content. This action could not be timelier, as they find themselves in complicated negotiations with payment processors (such as Stripe). This is a welcome development given the difficulties platforms have been having with the regulatory landscape. As a result, they find it difficult to adhere to payment processors’ policies on sexually explicit content.
Stripe has recently stated that it is “unable to support sexually explicit content” due to its “banking partners,” which places limitations on the types of transactions it can process. In light of these restrictions, Itch.io’s decision to re-index its adult content aims to clarify its offerings while ensuring compliance with payment processing guidelines.
Meanwhile, Steam, another major gaming platform, announced that it would ban games that violate the rules of its payment processors and related card networks and banks. For Valve, the company that owns Steam, it’s been a cut-and-dried policy since 2018. This policy enables further distribution of games that have been officially cleared for distribution. Its response to payment processors over this policy was allegedly turned down.
Payment processors have included vague threats about the “risk to the Mastercard brand” in their censorship communications around adult content. Mastercard imposes an extremely robust policy against “illegal or brand damaging transactions.” This position has already raised the ire of key game distribution platforms. Though negotiations continue, Mastercard has publicly disputed that they pressured any of the gaming platforms.
“Mastercard has not evaluated any game or required restrictions of any activity on game creator sites and platforms, contrary to media reports and allegations.” – Mastercard.
“At the same time, we require merchants to have appropriate controls to ensure Mastercard cards cannot be used for unlawful purchases, including illegal adult content.” – Mastercard.
In light of these changes, Valve recently issued a statement attempting to clarify its position. The company suggested that Mastercard intentionally avoided engaging directly with them by going through payment processors. Valve again restated their dedication to legal distribution of games.
“Mastercard did not communicate with Valve directly, despite our request to do so. Mastercard communicated with payment processors and their acquiring banks. Payment processors communicated this with Valve, and we replied by outlining Steam’s policy since 2018 of attempting to distribute games that are legal for distribution.” – Valve.
So as Itch.io opens up its capabilities beyond games, the wider implications for indie developers are pretty clear. There are huge, recurring conflicts between payment processors and game platforms. These legal battles underscore the intertwined nature of content-based regulation and financial services in today’s digital ecosystem.
