Skins betting crackdown to benefit regulated eSports operators
Betway says Valve announcement marks âthe beginningâ for licenced eSports wagering
A crackdown on the illegal âskinsâ betting industry â where people wager virtual items on eSports events â could provide a major boost for regulated eSports betting operators, according to industry experts.
Valve â the developer of distribution platform Steamâ said last week its software was not intended to be used for gambling and yesterday sent cease-and-desist letters to 23 of the largest skin gambling sites.
The termination of these sites, which combine to make up a $4bn industry, could provide a major boost to the regulated eSports betting industry which is currently about one sixth of that size.
âThis announcement isnât the âend of eSports bettingâ but in fact the beginning,â said Alan Alger a spokesperson for Betway, which runs a dedicated eSports betting portal.
âWeâd reiterate that eSports betting regulation hasnât actually changed, a betting licence has always been required to accept eSports bets, and customers who are keen to bet on their favourite eSports team should do so in a responsible way at a licensed operator,â Alger added.
Valveâs letter, sent yesterday by general counsel Karl Quackenbush, stated: âWe are aware that you are operating one of the gambling sites listed below. Your commercial use of Steam accounts is unlicensed and in violation of the Steam Subscriber Agreement.
âYou should immediately cease and desist further use of your Steam accounts for any commercial purpose. If you fail to do this within 10 days Valve will pursue all available remedies including without limitation terminating your accounts.â
Rahul Sood, the CEO of UK-licenced eSports betting operator Unikrn, said that all skins betting sites would get similar notices. âIf you arenât on the list, you will be,â he warned.
The growing popularity of eSports betting â both regulated and unregulated â has seen it draw the attention of Great Britainâs Gambling Commission, which said yesterday the sector would be looked at more closely since it âhas scope to present issues for regulation and player protectionâ.
Moritz Maurer, the head of eSports at Betgenius, added: “Valveâs crackdown on the unregulated skin betting market came as no surprise. Having witnessed its mammoth growth occur under the radar, it was only a matter of time before these sites came under the scrutiny they deserved.
âJust like unregulated sports betting and gaming sites, the skin betting environment provided little or no protection for customers and indeed the integrity of the games themselves. Underage gambling has been rife and reports of match-fixing were reaching alarming levels.
âWe support the transition of the eSports betting market towards regulated operators, in which KYC, transparency and player protection are safeguarded.”