Fall Guys: Ultimate Knockout has taken the gaming community by storm since its release on August 4, namely due to a unique playstyle that offers countless hours of fun, frustration, and competition.
It has quickly become one of the most popular games in the world, beating the likes of PlayerUnknown’s Battlegrounds, Fortnite and even League of Legends to become the most-watched title on Twitch in the last week with a reported 181,974 average viewers.
With Fall Guys attracting significant interest from the commercial sector, the game’s developers have decided to put their reach to good use with a charity auction.
The ‘Battle of the Brands’ will see businesses and people bid against one another for the right to have their branding included on an in-game skin. Anyone who meets the criteria of the competition will be able to enter the bidding war, which will conclude on Monday, August 31.
Many high-profile companies and individuals have already shown their interest in the Fall Guys auction, including the likes of Tyler “Trainwrecks” Niknam, Warframe, Rivals of Aether, Pink Gorilla, Cooler Master, BisectHosting, ROCCAT, Logitech, Sidemen, TUSHY Bidet and more.
At the time of writing, G2 Esports are the top bidders with a $130,003 pledge. It appears that mark won’t last long, however, as several of the world’s biggest gaming companies and entrepreneurs have taken notice of the auction. That includes Activision Blizzard as well as Team Trees co-creator Jimmy “MrBeast” Donaldson, who is known for sparing no expense on charitable causes.
All proceeds will be donated to the UK-based charity SpecialEffects, who help people with severe physical disabilities enjoy the world of video games with specially designed technology ranging from modified joypads to eye-control devices.
SpecialEffects said of the Fall Guys auction: “It’s so amazing to see the INCREDIBLE reaction to this! Huge thanks to Fall Guys and everyone involved for the extraordinary signal boost!
“The money raised will enable us to help so many people with disabilities to get back in the game.”
]]>Some see it as a virus, others as a bit of harmless fun.
Many looking in from the outside have only the vaguest idea of what it is and how it works.
For those in the latter camp, skins are virtual goods that allow players to customise their character’s appearance within a game.
The trading of these non-essential items came to prominence in Counter-Strike: Global Offensive, which began offering weapon skins in 2013.
Players started using the Steam Marketplace to buy and sell skins in exchange for virtual currency that could then be used to wager on esports matches and games of chance.
This led to serious concerns about the spread of underage gambling, especially in the United States gaming scene before the PASPA laws were repealed earlier this year.
Skin betting companies have sought to eliminate this underground trade with specialised cryptocurrencies such as Skincoin and SkinPay.
As EbetFinder’s Mattias Fr?brant explained to Gambling Insider, regulation and licensing have an important role to play in the legitimisation of skins gambling.
“It’s important to know that there are two types of skin betting sites available,” he said.
“On one hand, you have a certified and legal site that operates under a strict gambling legislation, and then you also have the rogue sites that are operating without any license.
“The first ones make betting with skins possible, through trading skins for money through a deposit method called SkinPay.
“This means you don’t really bet with the skins, but you have sold them for real money that can be wagered.
“These sites have a gambling license and have strict rules they need to follow, which includes not letting underage people gamble.
“If they did, they could receive a heavy fine or even lose their gambling license.
“To prevent underage people from gambling, they have verification processes that every player has to go through at some point, which includes sending in a copy of your ID.”
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Despite the growth of legitimate avenues for skins trading in games such as CS:GO and Dota 2, there remains a thriving black market where unlicensed operators do business with underage players and people from regions with strict online gambling laws.
“With the illegal sites, it’s a whole different story, as no gambling license exists whatsoever,” Fr?brant continued.
“The difference here is you don’t have to create an account with your personal details; all you have to do is sign in using the Steam platform and then you’re all set.
“There is no verification process or anything keeping underage people from gambling.
“In other words, anyone can visit these sites and deposit their skins (which sometimes are traded for points) to gamble with, and then just as easily withdraw skins back to their Steam account.”
Fr?brant expressed sympathy for Valve, the company behind the Steam Marketplace, but others believe the software developer could be doing a lot more to stamp out the illegal skins racket.
“Valve continues to battle the third party unofficial trading and gambling sites that use skins as currency,” said Jack Symons, founder and CEO of Gamban.
“They continue to fail. On the one hand, they condemn these platforms, on the other they provide API functionality to connect to Steam.
“From our point of view – and we’re in talks with Valve about this – if they cared enough about blocking these harmful platforms, then they would work with us to prevent them from being accessible to children and vulnerable adults.
“Time will tell.”
Gamban specialises in software that prevents illicit gambling activity within online video games.
Symons, like Fr?brant, believes proper regulatory framework is the obvious long-term solution.
“My advice to everyone but games developers/operators is this: learn from online gaming,” he said.
“Those operating in the skin-betting space may want to see their traditional counterparts’ failings as cautionary tales, but let’s be honest, the downsides have been minimal.
“Paltry slaps on the wrist with little impact on the bottom line or share value have been handed out, and let’s not expect too much out of self-regulation.”
However, Symons urged the gaming community not to expect any drastic changes to esport regulation in the immediate future.
“Effective regulation is needed – but that’s easier said than done and I don’t have enough experience to comment on policy and enforcement,” he continued.
“I like the way the Gambling Commission has responded to loot boxes, but equally I’ve not seen much on the topic of skin-betting sites that exist outside gaming platforms.
“Cynically – and I hope to be proven wrong – my advice is this; don’t expect much and there will be at least five years before anything gets done.”
]]>But the products they are gambling on aren’t blackjack or poker. Instead, they are betting on skins.
Skin betting has been on the UKGC’s radar for some time now, which the regulator believes is more problematic than loot boxes in video games.
Skins betting sites allow players to gamble with virtual items, such as guns or knives, you can win in video games for real money.
A few weeks ago loot boxes in video games, which are randomised items you can purchase in games, made headlines as the Belgian Gaming Commission said they count as a form of gambling.
While other regulators around the world agreed, the UKGC said loot boxes do not meet the definition of gambling since you cannot exchange them for real money.
The UK gambling regulator did note that skin betting counts as gambling, identifying several sites where players can trade and sell skins, as well as gamble them for the chance to win better ones.
Critics argue skins betting is a form of unlicensed gambling since players can exchange them for real money.
“Because of these unlicensed skin betting sites, the safeguards that exist are not being applied and we’re seeing examples of really young people, 11 and 12-year-olds, who are getting involved in skin betting, not realising that it’s gambling,” UKGC CEO, Sarah Harrison, said.
“At one level they are running up bills perhaps on their parents’ PayPal account or credit card, but the wider effect is the introduction and normalisation of this kind of gambling among children and young people.”
In an unprecedented move, the UKGC prosecuted owners of an unlicensed gambling website connected to a video game earlier this year.
The two owners were fined ￡91,000 and ￡164,000 under the UK’s Gambling Act for the FUT Galaxy website which allowed players to gamble virtual currency connected to the FIFA video game.
Harrison said the UKGC looked into taking criminal action, but limitations prevented it from proceeding. She added that many sites are out of the regulator’s jurisdiction, too.
The BBC spoke to one young man who began skin betting when he was 15, resulting in a loss of around ￡2000 in the four years that have followed.
“I’d get my student loan, some people spend it on expensive clothes, I spend it on gambling virtual items,” Ryan Archer told the BBC.
“There have been points where I could struggle to buy food because this takes priority.”
Archer said he would gamble on unlicensed websites to try and raise money to buy skins that he could not afford.
“It’s hard to ask your parents for ￡1,000 to buy a knife on CSGO (Counter Strike: Global Offensive), it’s a lot easier to ask for a tenner and then try and turn that into ￡1,000,” he said.
Players can exchange real money for skins (modified weapons) in CS:GO, and there are several gambling sites connected to the game.
“You wouldn’t see an 11-year-old go into a betting shop, but you can with this, there’s nothing to stop you,” Archer added.
The report will be published by the Office for National Statistics on Tuesday.
Skin betting sites vs licensed gambling sites
Online betting sites accept wagers on esports. The difference is these sites offer properly regulated markets where you bet on the outcome of esports tournaments, not gamble for upgraded digital weapons. They’re also licensed by gambling regulators which ensure the bookmakers have the appropriate responsible gambling measures in place, including preventing minors from gambling. We recommend checking out William Hill for a great selection of esports betting markets if you’re over 18.
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The UK Gambling Commission wants parents to be aware of the dangers of eSports skin betting.
A Commission paper released this week has revealed the growing number of unregulated third-party websites which allow gamers to wager on video game tournaments using in-game items, such as digital guns and knives. These are known as skins.
The Commission’s CEO, Sarah Harrison, commented on the findings, stating it is worrying parents could be giving money to their child to play a computer game when in fact they are gambling.
She noted the rise of gambling sites using skins as a betting currency.
“Gambling on eSports with in-game-items is growing and we need to make sure all gambling is fair, safe, crime-free and protects the young and vulnerable,” Harrison said.
Undersecretary for the Department of Media, Culture and Sport, Tracy Crouch, supported the Commission’s findings.
“eSports is a phenomenon that gets bigger every day and is enjoyed by millions, but it is a concern that there are unlicensed websites jumping on the back of popular video games and encouraging children to gamble,” she said.
“The Gambling Commission has shown that it will take action and prosecute but it is important that parents are vigilant too and know about this risk to their children.”
Crouch is referring to the case the Commission took against a pair of eSports gambling site promoters. The pair pleaded guilty last month, paying ￡265,000 in fines and court costs.
The Commission has also been proactive in terms of regulation, requiring any site which provides betting on eSport matches to have UK Gambling Commission licence. Licences are also required if a site allows virtual goods to act as a “de facto virtual currency.”
The eSports Position Paper
The position paper focuses predominantly on gambling in eSports. When it comes to social gaming the Commission’s stance is there is no “persuasive case to pursue further regulatory
intervention at this stage.”
It maintains the view gambling sites which offer virtual currencies must have a UK Gambling Commission license, since it’s just another form of money.
The paper says since interpreting legislation is up to the courts, it “seeks to balance an interpretation of the legal framework” to assess “where interactive entertainment has crossed or is in danger of crossing boundaries into licensable gambling activities.”
The Commission said it will penalise any unlicensed gambling facilities which present “a risk of harm to children is and will remain a significant aggravating factor.”
It noted while a “zero-tolerance approach” will be taken when it comes to unlicensed gambling operators, the Commission “will also liaise with games publishers and/or network operators who may unintentionally be enabling the criminal activity.”
When it comes to skin betting the Commission said it has been proactive in engaging with global regulators to ensure consumers, particularly children, are protected.
It also added skin-betting is “a by-product of the manner in which games have been developed and in-game economies incorporated for commercial benefit.”
Despite the Commission revealing it was unable to find any evidence “of any direct commercial benefit to games publishers from the illegal gambling facilities” it says they indirectly benefit since “it is the games publishers who are the ultimate source of in-game items acting as a de-facto central bank.”
The paper addressed the concerns over the integrity of eSports events but found no evidence to support the trepidation.
But the Commission said it “will continue to work with those committed to raising awareness and addressing integrity risks within eSports including exploring memorandums of understanding where appropriate.”
eSports statistics
The paper also revealed only 8.5 percent of adults surveyed via its gambling participation surveys had wagered on eSports in the last year. Of the small group of eSports punters, 58 percent of eSports gamblers were male, while 42 per cent were female, but women were found more likely to bet using in-game items.
When it comes to betting currency, 90 percent bet using in-gaming items, 88 per cent used real money, and 78 percent used both.
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The underground world of eSports gambling just took a big from UK gambling authorities.
YouTube and eSports star Craig Douglas pleaded guilty alongside his business partner, Dylan Rigby, for running an illegal gambling ring.
They both admitted their roles in prompting eSports players to bet on their own and other pro gaming matches using an in-game FIFA currency called FIFA Coins.
They created a website called “FUTGalaxy”, on which users could bet using the currency and engaging in lottery and slot-like games to win additional coins.
The site generated a pre-tax profit of ￡96k in less than a year from July 2015, with thousands of registered users on the site, many under the legal gambling age in the UK.
While both men were spared jail time, Douglas was fined ￡16,000 and ordered to pay ￡75,000 after he admitted his role as an “advertiser and a promoter” of the service.
Rigby received a much harsher penalty, ordered to pay a ￡24,000 fine and ￡150,000 in court costs after admitting to have been a “prime mover” in the operation of the site.
District Judge Jack McGarva said both men were clearly aware that children were accessing the site.
“At the very least, you both turned a blind eye to it,” he said.
Legal proceedings began against the duo in late 2016 when the UK Gambling Commission accused them of running an unlawful gambling syndicate.
They accused Douglas of promoting illegal gambling activities via his YouTube page, where he has more than 1.3 million subscribers, many of whom are minors.
The pair had initially entered not guilty pleas, but changed their pleas leading into a hearing. Douglas had feared jail time, telling his followers there was a probability that he would not be walking out of court on Monday morning. “[And] that’s scary,” he said.
Governments around the globe are working to reign in the growing underground eSports gambling industry, which mostly deals in in-game skins, video games currency, and tokens.
A popular scene is occurring with Counter-Strike: Global Offensive and Team Fortress 2, with developer, Valve, sending cease a desist letters to a number of illegal gambling operations.
These sites generally allow users to bet either in or for in-game currency, with certain items being extremely rare in the game and therefore demanding a high real currency cost.
eSportBet’s opinion: This has been a long time coming, and it raises interesting questions not just about the influence of “influencers”, as they are called, but also the relationships they have with audiences. Recent laws passed in Australia and current laws in the US force YouTubers, Streamers and other online personalities to disclose any promotions. In this case, even disclosure would not have mattered as the act was illegal. We don’t have an issue personally with the use of in-game currency as a betting currency, but it is clear it needs to be regulated and managed in a way to avoid it being used to exploit minors.
]]>Valve was quick to move in on CS:GO gambling sites, and now it’s cracking down on the underworld of another of its popular multiplayer games: Team Fortress 2.
“In July of last year we outlined our position on gambling web sites, specifically noting that Valve has no business relationship with these sites,” the company said in a statement on its official website. “At that time we also began blocking many CS:GO gambling accounts.
“More recently, some gambling web sites started leveraging TF2 items. Today we began the process of blocking TF2 gambling accounts as well. We recommend you don’t trade with these sites.”
One of the world’s leading video game developers, the studio behind Team Fortress 2 and Counter-Strike: Global Offensive has been embroiled in a number of legal battles over the last few years, both against underground gambling sites and as a defendant.
While it’s gone to great lengths to reign in the extent of illegal item betting, Valve still has a lot of work to do in clamping down on the dark underground of game gambling.
The extent of the industry, in which players purchase in-game items and then on-sell them or wager them on eSports games via illegal gambling sites, has prompted Independent Australian Senator Nick Xenophon to propose a bill he says could make it illegal for Valve to solicit payments in exchange for items.
That appears to be a move that attacks the developer rather than those explicitly using the system for monetary gain.
The bill also proposed that as an alternative to a flat-out ban, age and/or spending restrictions on games are applied instead.
CS:GO currently offers in-game purchases, and features a slot-like process in which players can earn either common inexpensive items, or rare expensive items.
Once a player receives an item, they can use it to bet on competitive eSports matches, an industry experts believe is worth more than US$7 billion.
The underground item-betting scene went unchecked for a number of years, before a Florida mother took Valve to caught claiming her son had lost a “significant” amount of money gambling with in-game items.
Valve responded by immediately issuing cease and desist letters to a number of gambling sites.
Author’s Opinion
Senator Xenophon’s proposed bill punishes Valve for having simply offered the service. The problem, however, is that certain items are worth a considerable amount of money due to the nature of their influence on the game. Other games offer a similar paid service, but the items available are generally cosmetic items such as costumes, not items that permit gameplay boosts. Seeing as Valve treats the items as a form of currency, it goes without saying that perhaps an official betting service open to adults would stop third-party illegal sites opening and exploiting minors.
]]>Research conducted by Eilers & Krejcik Gaming and Narus Advisors, via ESPN, has found that US$5 billion worth of Counter-Strike: Go game skins were wagered on eSports matches throughout 2016.
Interestingly, more than half of that figure came through unregulated sites from the “darker corner of the internet”, suggesting there is still a rampant underground scene of eSports gambling that could compromise the legitimacy of the sport.
Further, a lot of the skins earned through wagers can be used on traditional online casino games such as video slots, roulette and other popular games.
In CS: GO, players can pay as little as $US2.49 for gun skins and cases created by the game’s developer, Valve.
These are often rewarded via a randomised slot machine, which gives common low value items to the player, or lucrative “rare” items that are often used as betting fodder in a growing underground gambling scene.
Valve was named in two separate lawsuits related to the gambling sites that manage the wagering of skins in 2016.
One was by a Florida mother who said her son had dumped a “significant” amount of money into one of these sites.
Valve responded by sending cease and desist letters to 23 gambling sites, and warned a further 20 sites about the use of the company’s commercial property being against its terms and conditions.
The US and Australian governments are both working to shut down the industry, especially as eSports enters the mainstream on legitimate and regulated betting sites.
Independent Australian Senator Nick Xenophon has been calling for video games with pay-to-win features to be classified as gambling, and has already tabled a new bill for parliament.
“Instead of shooting avatars, parents soon find out that [their children] have shot huge holes through their bank accounts,” Senator Xenophon told Fairfax Media in 2016.
Author’s Opinion
My primary concern with the nature of this gambling industry is that, aside from being unregulated, it has been known to invite professional players who are performing on teams listed on betting sites. This generates concerns for genuine punters who fear players may be fixing matches and gaining lucrative skins, which can then be sold off for a significant profit.
While I’m not normally one to celebrate the regulation of a betting industry, it’s clear that skin wagering and gambling tactics used by these games are severely compromising the legitimacy of eSports, and it’s something I hope can be reigned in sooner rather than later.
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