A brief history of esports betting and skin gambling

What this article is about Electronic sports (esports) are competitive video Why is this article important? game matches. Esports are like professional sports. This article reviews and summarizes current The matches take place between skilled players or knowledge on electronic sports (esports) and skin teams. They can be viewed online or in-person with betting. The research highlights the increasing large audiences. Esports are organized events and its popularity of these newer forms of gambling. It athletes can take on celebrity status. shows that young males are more likely to engage Esports has existed since the 1980s. It has grown in esports and skin betting. Young people are also exponentially since 2011 with the launch of Twitch. exposed to advertisements for these activities. Twitch is a live-streaming platform for esports. In Esports and skin gambling may increase problem 2019, there were 454 million viewers and esports gambling. This article highlights the changes in made a total of $1.1 billion. Individuals who watch esports and skin gambling market. It also discusses esports tend to be younger and male. industry and government responses to concerns about these activities, particularly related to Today, many sports betting companies allow people underage gambling. to bet on esports. Also, people can gamble on esports through unregulated sites using skins. Skins are virtual search covered papers published in English from 2000 video game items. They are purely cosmetic and do to March 2019. not provide in-game advantages. Skins are collectible The authors found 10 journal articles and 10 and range from common to rare. Some skins can be government reports from their search. The first worth thousands of dollars. Skins can be purchased or author then did a manual search of the references of obtained as rewards in video games. They can be won these articles and reports. This resulted in 16 news on loot boxes or by gambling. They can also be traded articles, 15 journal articles, nine reports, three press or sold between players. releases, and one conference presentation.

There have been concerns that esports and skin What you need to know gambling blur the line between gambling and gaming. But not much is known about these newer forms of Esports betting is now offered by many gambling gambling. This article provides a historical overview operators around the world. There are also operators and identifies key issues on esports and skin gambling. that only offer esports betting. Esports betting can take place with traditional payment methods (cash, What was done? credit) and with cryptocurrencies such as Bitcoin. The researchers searched for journal articles, industry People can also gamble on esports informally with and government reports, news articles, and social friends or other players. Gambling on esports with media posts on esports betting and skin gambling. The skins via unregulated websites is also popular. Esports cash and skin betting had a $56 billion revenue in

2016. This dropped a lot in 2019 after some video who bet on skins were at greater risk of problem game companies took actions against unregulated gambling. Another study reported that video gamers skin betting websites. Advertising for esports were also more likely to gamble online and in video gambling is common during matches and on social games. media. Who is it intended for? Not much research has been done on esports betting. The research provides an overview of current One Australian study found that both esports bettors knowledge on esports and skin gambling. It highlights and sports bettors were male. But esports bettors several issues for researchers, regulators, and policy tended to be younger, better educated, and had a makers to consider for the future. higher income than sports bettors. Skins used for esports betting is common and known as skin About the researchers gambling. A UK study found that young people bet Nancy Greer is affiliated with the School of Health, more with skins than with money, and esports betting Medical and Applied Sciences at the CQUniversity was more common among males. Australia in Victoria, Australia. Matthew Rockloff, As some skins can be worth thousands of dollars, they Matthew Browne, and Nerilee Hing are affiliated with have market value. Skin gambling can be a way of the School of Health, Medical and Applied Sciences at making money. Skins can also be used on third-party the CQUniversity Australia in QLD, Australia. Daniel L. sites to gamble on games of chance such as roulette King is affiliated with the College of Education, or on esports matches. Skins had evolved since they Psychology, & Social Work at Flinders University in SA, became available in 2013 on Counter-Strike: GO. In Australia. For more information about this study, this game, skins could be purchased, sold, or traded please contact Nancy Greer at [email protected]. via Steam. Steam is the official marketplace for the Citation game developer. The demand created a marketplace for skins within Steam and shortly with third-party Greer, N., Rockloff, M., Browne, M., Hing, N., & King, sites. D. L. (2019). Esports betting and skin gambling: A brief history. Journal of Gambling Issues, 43, 128-146. A concern for skin gambling is underage gambling. http://dx.doi.org/10.4309/jgi.2019.43.8 Most websites need only a Steam ID and not an age verification. Steam membership is available for people Study funding over 13. Online advertisements for skin gambling are This research was supported by an Australian also common on social media. Advertisements can Government Research Training Program Scholarship. affect younger individuals to gamble. The concerns about skin gambling have led to many legal issues and lawsuits. Some countries have moved to regulate skin About Gambling Research Exchange (GREO) gambling (e.g., requiring operators to have a gambling Gambling Research Exchange (GREO) has partnered license) and block access to illegal sites. with the Knowledge Mobilization Unit at York University to produce Research Snapshots. GREO is an A large UK study found that skin gambling among 11- independent knowledge translation and exchange 16 year-olds declined from 11% in 2017 to 3% in 2018. organization that aims to eliminate harm from The decline could be because of government and gambling. Our goal is to support evidence-informed game developer actions. Skin gambling was more decision making in safer gambling policies, standards, common among boys. Another study found that 29% and practices. The work we do is intended for of 13- to 18-year-olds viewed skin gambling as a researchers, policy makers, gambling regulators and problem. They reported they could access many sites, operators, and treatment and prevention service and some had bought skins to sell for profit. Those providers.

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