The situation unfolded in dramatic fashion—thanks in part to reports from Garbage Day and Rock Paper Shotgun—and centered around DrTankHead, who was at the time a moderator of the official Balatro subreddit and currently moderates an NSFW version of the community.
DrTankHead had previously stated that AI art would not be banned from either subreddit, provided it was clearly labeled. In a now-deleted post, they wrote: “We will not be banning AI art here, if it is properly claimed and tagged as such.” The mod added that this policy had been discussed with Playstack, Balatro's publisher.
Localthunk quickly responded via Bluesky, clarifying that this stance did not reflect their own or Playstack's position. The developer then posted directly on the subreddit to set the record straight.
“Neither Playstack nor I condone AI 'art'. I don't use it in my game, and I believe it causes real harm to artists across all disciplines,” Localthunk stated. “The actions of this moderator do not represent how Playstack feels or how I feel about this issue. We have removed this moderator from the moderation team.”
They continued: “AI-generated images will no longer be permitted on this subreddit moving forward. Our rules and FAQ will be updated to reflect this policy change soon.”
In a follow-up, Playstack’s communications director acknowledged that the previous rule requiring “no unlabeled AI content” may have led to confusion, potentially giving the impression that AI content was allowed if properly tagged. The remaining moderators plan to revise the language to prevent future misinterpretations.
Meanwhile, DrTankHead confirmed their removal from the r/Balatro moderation team in a post on the NSFW subreddit. They clarified that their intent isn’t to make the NSFW community AI-centric, but expressed interest in exploring a weekly posting schedule where non-explicit AI-created art could be shared.
One user humorously replied: “Please just get off Reddit for a week or two.”
This incident arrives amid a broader industry-wide debate over generative AI, particularly within gaming and entertainment sectors already reeling from large-scale layoffs. Concerns surrounding AI usage include ethical dilemmas, intellectual property rights, and the general dissatisfaction with AI’s ability to produce high-quality, audience-friendly content.
For example, Keywords Studios attempted to develop an experimental game using only AI—but ultimately failed, citing to investors that AI "was unable to replace talent."
Despite these setbacks, major tech companies continue to push forward with AI initiatives. EA has declared AI to be “the very core” of its business strategy, while Capcom recently announced it is testing generative AI tools to help design the vast number of environmental assets required for modern games. Activision also found itself in hot water after confirming the use of generative AI for some assets in Call of Duty: Black Ops 6, including a controversial AI-generated zombie Santa loading screen branded by fans as “AI slop.”
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