Video game developer Valve has issued cease and desist letters to 23 websites that use the company’s Steam platform to enable the betting of weapon “skins” in its popular game Counter-Strike: Global Offensive.
Valve gave the companies 10 days to comply with the order or face further action in the wake of an earlier lawsuit filed against Valve by a player for facilitating underage gambling. Around half of the websites named by Valve have since ceased operations.
Skins betting emerged in 2013 after the company introduced an update for the game that allowed players to win virtual skins for their in-game weapons. These skins could then be traded or even sold for real money on any of the trading sites that popped up.
But because the skins were worth real money, it didn’t take long for players to start using them to place bets on the outcome of eSports matches or tournaments – so much so that more than three million people wagered an estimated US$2.3 billion worth of skins in 2015 alone.
A handful of professional players have even been caught fixing matches in order to profit from this underground skins market. Ironically, Valve’s crackdown could result in both player and viewership numbers dropping off given that a considerable chunk of the audience only watches competitive Counter-Strike matches because they have placed skins bets on them.
