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Someone is suing Valve over CSGO skin gambling

One of the core elements to Counter-Strike: Global Offensive's success is the item skin trading system. People buy keys to crates, sell old skins and buy new ones on the Steam marketplace constantly but there is also a vert successful, though unofficial, gambling scene for CS:GO. Valve is pretty hands-off when it comes to what the community does on its own and now someone is suing them for that.

CS:GO's gambling seen has been left unregulated and unchecked by Valve, like a lot of other third-party activity. However, these third-party skin sites can get away with an awful lot, like lax age restrictions and since skins do have a monetary value, this essentially means that teenagers can illegally gamble for real cash.

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As Polygon's report points out, Michael John McLeod's lawsuit against Valve aims to gain class-action status and alleges that Valve has “knowingly allowed and has been complicit in creating, sustaining and facilitation” what could be considered an “illegal online gambling market”.

“In the eSports gambling economy, skins are like casino chips that have monetary value outside the game itself because of the ability to convert them directly into cash”, since these sites don't require age verification, this amounts to underage gambling. That is essentially the backbone of the entire complaint.

Illegal gambling can have some serious consequences and so far, Valve hasn't commented on the lawsuit, so we aren't sure how the company intends to go forward just yet. You can read the entire lawsuit complaint, HERE. 

KitGuru Says: Unless there is some proof that Valve directly helps out these third-party gambling sites in any way, then I'm not really sure Valve is the company to go after. It would make more sense to try and force the gambling sites themselves to conform with gambling laws and require age restrictions. Have any of you guys ever gambled with CSGO skins?

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13 comments

  1. WhateverYouWantItToBe

    All I can say is it’s about time. These sites don’t conform to the gambling regulations that they should conform to and few have age verification.

    Saw elsewhere that the industry is worth $2 billion! Valve is obviously making a lot of money from this through the trading “tariffs” etc. and deserve part of the blame for facilitating it.

  2. Best sue the ISP, too, for allowing the traffic. Also the national government for allowing the ISP to run their infrastructure there. /s

  3. WhateverYouWantItToBe

    Haha that’s ludicrous. Valve on the other hand are essentially dealing out the chips to gamble with and even allows gambling inside the game with keys and cases.

  4. Dudes a CS:GO player. He made a bad bet and now he’s butthurt about it.

    Valve have nothing to do with esports gambling. They provide the currency in the form of skins, and give those skins value in the form of the marketplace but they don’t run the business nor do they in any way promote it. Sure they may inherently make money off of it but that’s because they’re the platform. If the little kid wants his skins back sue the sites that are hosting the gambling, using bots to automate the system and failing to conform to gambling regulations such as lounge

  5. Honestly, if Valve requested the site gone they’d find another site. Gambling us different in every country around the World. If a site like this pops up gambling commissions could easily address these. It’s hard to regulate digital currency though. Take Bitcoin for instance.

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  7. WhateverYouWantItToBe

    If these sites were forced to follow gambling regulations of the country in which they reside (eg America and Europe mostly) they would be forced to have security checks (usually done through credit cards online). They’d stop making money and the industry would pretty much die off, I doubt most would be willing to take the risk to move their business to a country with light gambling regulation.

  8. asked this elsewhere, but don’t you have no legal recourse over illegal gains/losses? the guy was 17, which is (i think) below the legal gambling age in the US.

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  10. its not bad to ban it cuz 13 year olds are like spending a lot of money on skins just so they can bet ive seen kids gamble away 500$ and more

  11. It’s a bit of natural selection tbh, just like normal gambling, if you put 500 USD into a virtual item, then risk a high chance of losing it just to maybe gain a little more back… then thats just stupid. Just as silly as winning 1m USD in the lottery and instantly placing it on a bet for a horse with idk 1 in 9001 chance of winning.. cos hell that’s gonna go down well haha.

    Besides, where are all these kids getting 500 USD from? I’ve worked myself up over 2 years and have only about 260 USD of items, and i certainly have no intention of wasting all that and gambling it away.

    Gambling large amounts in the hope of even bigger gains is just stupid and greedy.

    Besides, how would Valve stop these sites? Theres probably about a thousand of those crumby spin the wheel 100 slots per round sites just from russia alone (maybe they’re the intelligent ones this time round, praying on the stupid and greedy minds of the weak).

  12. I don’t even know vwhy anyone would play this vame ket along waste good money on skins for it

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