State regulator orders Valve to halt CS:GO skin gambling through Steam

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By Andy Chalk 3 hours ago

 

The Washington State Gambling Commission says Valve could face criminal penalties if it doesn't pull the plug.

 

The Washington State Gambling Commission is demanding that Valve halt the transfer of CS:GO skins through the Steam API, which it says contravenes state gambling laws. In a press release posted by the Esports Betting Report, the regulatory agency gave Valve until October 14 to "explain how it is in full compliance with Washington's gambling laws," and warned that failure to do so could lead to civil or criminal action being brought against it. 

 

The WSGC contacted Valve about the use of CSGO skins in online gambling back in February 2016, initially "to determine if any additional action was needed." As a result of its investigation, the Commission has ordered Valve to "take whatever actions are necessary" to keep third-party sites from using the Steam platform to engage in skin gambling activities. 

 

"All third party gambling sites have Steam accounts and use the Steam platform to conduct their gambling transactions," the commission said in the release. "These gambling transactions are automated and performed by a software program or 'bot,' and have proliferated so much that a recent market report by Esports Betting Report indicates that one specific gambling website, CSGO Lounge, brought in approximately $1 billion in 'skin' gambling between January 1st and August 1st this year alone." 

 

"In Washington, and everywhere else in the United States, skins betting on esports remains a large, unregulated black market for gambling. And that carries great risk for the players who remain wholly unprotected in an unregulated environment," Washington State Gambling Commissioner Chris Stearns said. "We are also required to pay attention to and investigate the risk of underage gambling which is especially heightened in the esports world. It is our hope that Valve will not only comply but also take proactive steps to work with the Commission on future measures that will benefit the public and protect consumers."

 

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