Have you ever heard of CS: Global Offensive players making money by trading electronic skins? This practice has been around for quite a few years now, and it continues to be the center of debate among many gamers. Some have shared stories of making a fortune, while others say that there’s no real money that can be had. There’s also the issue about the legality of skin gambling in this particular game. There are many factors to consider here, so let’s explore each one of them.

The History of (Electronic) Skin Gambling

Unless you’re an avid player of CS:GO, you may not be familiar with how skin gambling exactly works. It’s a fairly recent development, having started in 2013 after the makers of CS:GO released the Arms Deal Update. They consider it one of the most important updates ever, but it has since spurred a practice that continues to be frowned upon by countless gamers today.

In this update, users had been allowed to trade their virtual weapon skins. These digital assets may not have any value to you, but some gamers will pay real money to get their hands on them. Valve Corporation may not have expected that this update would lead to so much controversy. It opened the doors for players to buy virtual items using real currency and trade in these in-game items with other gamers as well.

The makers of the game introduced a system in which dropped items can only be unlocked after using a key. This key can be purchased through a trade or from the Steam marketplace. These items were weapon skins and cases, now often referred to as skins. It’s worth noting that these skins aren’t weapons themselves. They only provide the weapons with a unique look, thus boosting their aesthetic appeal.

But what really fueled this new trading practice is the fact that Steam received an API which allowed anybody with a Steam account to actively trade CS:GO skins. Some of these skins prove to be extremely rare. And just like in real life, rare items command a lot of money.

Over time, the market grew larger. The rarest skins can cost more than a thousand dollars. Many players were making good money, and Valve benefits immensely as well. For every transaction on the market, they receive a certain percentage. Just imagine how much money they’re raking in just by allowing players to trade in-game skins for cold, hard cash.

How Does It Work?

Skin gambling rose into prominence after players figured out that many people would be willing to shell out money in exchange for a particular skin. The controversy, however, doesn’t have anything to do with gamers buying the skins they want. The real problem lies in the fact that many websites now allow these digital skins to be used for gambling instead of using real money. Anybody who owns CS:GO skins can gamble them on different games online.

Many players use the skins on Pot based games. This involves depositing the skins in the pot instead of real money. Others choose to use their skins on popular casino games such as roulette, poker, and blackjack. The skins can also be used on some sports betting websites.

But perhaps the most popular form of skin gambling is in professional gaming. Owners can bet their skins on what team or player they want to win. This is now often referred to as esports betting. In fact, many people say that skin gambling has a lot to do with the quick rise in popularity of esports betting.

Just How Big is Skin Gambling?

If you look at the numbers, skin gambling remains relatively small in the world of online gambling. Many betting websites accept skins as a form of money. But still, the growth of skin gambling is nothing short of incredible. According to estimates, CSGOlounge.com was visited by over 38 million people in March 2016.

Where things get interesting is in esports betting. In 2016, the esports gambling market was pegged at $8 billion. Skin gambling accounted for a whopping $7.4 billion, leaving only 600 million in cash.

Is CS:GO Skin Gambling Legal?

Now, it’s important to understand the legality of skin gambling. The market is relatively new, and it’s one that proves difficult to regulate. Different parties need to be considered here, especially the makers of the game, the gambling websites such as http://ww.rivalry.gg that accept skins, and the government.

Valve is the most important figure here. As the makers of the game, they have allowed the market to thrive for years. They also own the Steam API which allows for the easy integration of gambling websites with user accounts.

But it’s important to note that skin gambling doesn’t only involve CS:GO. Many games now allow the trade of in-game items for real money. Inevitably, their respective markets will grow as well, which means more gambling websites may start accepting these digital assets as a replacement for money.

Interestingly, Valve says that they believe that the skins do not hold any monetary value. This is why they refuse to control or regulate the market. In many ways, you can say that the market functions independently, with the buyers and sellers dictating prices. It’s the Law of Supply and Demand in action, and it’s one that may not go away anytime soon.

There are also reports that Valve has taken action on some gambling websites that refer to CS:GO skin gambling as a violation of their terms and conditions. It’s unclear, however, whether this action by the makers of the game is a result of external pressure or it has become their official policy.

In the US, online gambling is legal in all but four states. And because of this, it can be said that skin gambling or betting would be legal in the states that allow online gambling as well. With the continuous rise in popularity of esports betting, perhaps it’s safe to say that skin gambling will remain legal in the years to come.

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