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How Did CSGO Gambling Become Its Own Industry?

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How Did CSGO Gambling Become Its Own Industry?

One of the most successful competitive first-person shooter games in history, Counter-Strike - Global Offensive (CS:GO) has seen highest ratings figures for as long as it's been around. However, outside of their core gameplay, CS:GO and its players established an entire gambling ecosystem that was at one point worth over $5 billion dollars.

This article examines how the CS:GO gambling scene has grown into its own massive industry, and what factors have contributed to its rapid ascent.

The Origins of CS:GO Gambling

CS:GO gambling emerged soon after the game's release in 2012, initially centered around betting on professional matches. However, the introduction of cosmetic weapon skins in 2013 laid the groundwork for a much larger gambling scene. These purely aesthetic items could be obtained through gameplay or purchased on the Steam Marketplace, with rare skins sometimes selling for hundreds or thousands of dollars.

Enterprising third-party websites soon realized they could use these skins as a pseudo-currency for gambling. Players could deposit skins on these sites and use their value to bet on various games of chance like roulette, coin flips and jackpot-style games. If they won, they would receive skins of equal or greater value in return.

The Explosion Of Skin Betting

Between 2014-16, several factors came together to promote CS:GO gambling sites.

  • Accessibility – Unlike standard online gambling games, there was little in the way of age restrictions or verifications for consumers to prove they were not minors when using skin betting sites.
  • Real Value – Knowing that people could buy skins for real money on third-party marketplaces like Opskins. It meant they at least had tangible value in players' minds.
  • Twitch Streamers – Lots of big CS:GO streamers promoted gambling sites, often doing huge wins to tens-of-thousands of viewers.
  • Low Barrier to Entry – Players could start gambling with just a few low-value skins, unlike traditional casinos with minimum bets.
  • Payment Integration – The possibility to trade skins directly through Steam made deposits and withdrawals absolutely seamless, without requiring any verification.

These aspects supercharged the growth of the CS:GO betting industry and according to some estimates, it was worth over $5 billion dollars in 2016, with hundreds of CS:GO betting sites and millions of players participating from around the world.

Legal & Ethical Concerns

As the new industry flourished, so did its legal and ethical problems.

  • Underage Gambling – Many participants were minors raising concerns about underage gambling.
  • No Regulation – Many sites were shady and operating within the gray area, with no gambling license or oversight.
  • Fixing Matches – Professionals were also permitted to bet on their own matches, which led to some high-profile match fixing cases.
  • Scams & Fraud – Some shady sites were found guilty of rigging odds or stealing deposits from users.
  • Valve Roll – Questions arose about Valve's responsibility in enabling this ecosystem through their Steam API.

Industry Change Due to the Crack Down

Valve was repeatedly pressured to take action against skin gambling in 2016. It led them to reach out with cease-and-desist letters to some of the biggest gambling sites using Steam accounts for CS:GO betting and other commercial purposes. This action, combined with negative publicity and potential legal issues, led many large CS:GO gambling sites to shut down or pivot to other games.

However, the CS:GO industry didn't die; it evolved.

  • Adoption of Cryptocurrency – Despite the trade restrictions from Steam, hundreds of sites out there resorted to enabling deposits and withdrawals using cryptocurrencies in an effort to skirt these issues.
  • Esports Betting – Bookmakers switched to a more traditional sportsbook style of professional CS:GO match wagering.
  • New Game Modes – Some sites even made their own CS:GO-like games not depending on official skins.
  • Skin Gambling Model – The skin gambling phenomenon began with CounterStrike Global Offensive and other games followed such as Dota 2 and PUBG (PlayerUnknown's Battlegrounds).

The CSGO Gamble Today

While no longer at its peak, CS:GO gambling remains a significant industry. Many sites continue to operate, particularly those focused on esports betting. The introduction of stricter regulations in some countries has led to a more legitimate, if smaller, market.

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Valve has also taken steps to limit gambling within CS:GO itself. In 2019, they introduced trade holds for newly acquired items and made keys (used to open loot boxes) non-tradable, further reducing the liquidity of in-game items for gambling purposes. However, the traditional CS:GO match betting is still going strong and has become one of the most intriguing betting markets for punters.

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