Localthunk, the developer behind the popular roguelike poker game Balatro, intervened in a dispute on the game's subreddit concerning a moderator's stance on AI-generated art. The situation, initially highlighted by Garbage Day and Rock Paper Shotgun, began with DrTankHead, a former moderator of the main Balatro subreddit and current moderator of its NSFW counterpart. DrTankHead had previously stated that AI art would be permitted on both subreddits, provided it was properly attributed and tagged, citing a supposed agreement with Playstack, the game's publisher.

However, Localthunk contradicted this on Bluesky, clarifying that neither they nor Playstack supported the use of AI-generated imagery. A subsequent statement on the subreddit itself confirmed DrTankHead's removal from the moderation team and a policy change prohibiting AI-generated images. Localthunk stated their opposition to AI art due to its potential harm to artists.

Playstack's communications director acknowledged that the subreddit's rules regarding AI content lacked clarity, suggesting a misinterpretation of the existing "no unlabeled AI content" rule. The remaining moderators plan to revise the rules to avoid future ambiguity.

DrTankHead, in a post on the NSFW Balatro subreddit, acknowledged their removal and stated that while they wouldn't make the subreddit AI-centric, they were considering a schedule allowing AI-generated non-NSFW art on specific days. This suggestion was met with a user's suggestion to take a break from Reddit.

The controversy highlights the ongoing debate surrounding AI art within the gaming industry. Recent events, such as Keywords Studios' failed attempt to create an AI-driven game and various companies' varying approaches to AI integration (EA's strong endorsement, Capcom's experimentation, and Activision's use in Call of Duty: Black Ops 6 amidst criticism) underscore the complex ethical and practical considerations surrounding the technology. The Balatro situation serves as a case study in how differing opinions on AI art can create conflict, even within a single game community.