Yes, it's a form of hypnotism. But then again, as I've been saying for ages on this board, hypnotism is like going to the movies: it's all desire, suggestion and a willingness to believe on the spectator's part.
For example, in my shows, I do walk around hypnosis between performances. I find someone who is not drinking alcohol, like the designated driver, and give them the same kind of script that Criss used. So for the rest of the night, that person gets completely drunk on soda or water. It works well. Better than you'd expect. Of course, before that person leaves to drive home, I remove the suggestion.
