Counter-Strike: Global Offensive (CS:GO) has recently been hit with a major scandal, which could have a lasting impact on the professional gaming scene. The scandal revolves around the popular practice of skin betting, which allows players to gamble with in-game items. These gambling sites have become increasingly popular in recent years, sponsoring streamers, players, and even teams. However, the lack of regulation in this market has led to allegations of underhanded and dishonest practices.
Valve, the developer of CS:GO, and Twitch, the leading game streaming platform, have both responded to the scandal in an attempt to address the issue.
What is skin betting and why is it controversial?
CS:GO players can obtain cosmetic gun skins, which can be bought or obtained through random drops in the game. These skins can be sold on Steam or on third-party sites for real cash. They can also be used for gambling on various sites, ranging from casino-style games to sportsbook sites that take action on competitive CS:GO matches. The controversy arises from the fact that these gambling sites operate without regulation and are not considered gambling sites under current laws. This allows minors and players in countries where online gambling is illegal to use these sites freely.
How did this scandal start?
The scandal began with a popular streamer named m0E, who was sponsored by a gambling site called CSGO Diamonds. After a falling out, m0E threatened to expose the site for not paying him money he felt he was owed. He also claimed that CSGO Diamonds had informed him of game outcomes in advance so he could manipulate the results on his stream. However, CSGO Diamonds provided evidence showing that m0E had actually asked for the results. It was also revealed that most streamers who gambled on these sites were not using their own money, but rather playing with skins provided by the sites.
Who else has been implicated?
The scandal expanded when it was revealed that YouTubers Trevor “TmarTn” Martin and Thomas “ProSyndicate” Cassell had promoted a gambling site called CSGO Lotto to their combined audience of 10 million, without disclosing their ownership of the site. TmarTn is also a co-owner of the esports franchise EnVyUs. Another popular streamer named PhantomL0rd was also implicated for not disclosing his ownership of the site CSGO Shuffle and for asking for game outcomes in advance.
What are the consequences?
TmarTn and ProSyndicate, along with CSGO Lotto itself and Valve, have been named in class action lawsuits filed by individuals who allege that they have lost significant amounts of money on these gambling sites. One lawsuit specifically targets Valve for allowing this illegal gambling market to exist. Valve has responded by sending cease and desist letters to several gambling sites, and some have already shut down as a result.
How have the companies reacted?
Valve has released a statement distancing itself from these gambling sites, claiming that they are breaking the terms and conditions of Steam. Twitch has clarified its rules, stating that gambling on CS:GO skins is not permitted on stream. Some streamers have been affected by this, with their Twitch channels being suspended.
What does this mean for the future of CS:GO?
The long-term impact of this scandal is still uncertain, but it is likely to have some effect on CS:GO viewership. While some gambling sites have shut down, others are still operating normally. It is possible that government regulation will be implemented in the future. For now, there are still places where players can bet their skins, but this could change in the coming months.