Social Media Drives Growth in Virtual Items Betting

The problem is that most of these operators, which used paid advertising on Facebook, Google, and Twitch, were unlicensed and violated the rules of the big tech companies. This put minors at risk and violated the terms of service of these platforms.

These platforms promoted gambling using virtual items known as “skins,” which can be used as a currency to bet on the outcome of games. In particular, the popular game Counter-Strike (CS) allowed players to use skins for betting.

Skins won can be worth thousands of dollars on third-party markets, posing serious risks, especially for minors.

According to Mark Griffiths, director of the International Games Research Centre at the University of Nottingham, minors are more vulnerable to the effects of both gambling and gambling advertising. Rob Minnick, a gambling consultant, argues that social media advertising introduces children to gambling much earlier than they would otherwise discover the activity on their own. He points out that adolescence itself is a risk factor for addiction.

Google in the US prohibits advertising of online games that use currency to win money or items of value if the activity falls under the definition of gambling. Meta Platforms only allows gambling advertising with prior written permission, and Twitch completely prohibits advertising of skin bets related to the game CS.

However, despite these strict rules, skin betting ads continue to proliferate. Some platforms have taken down ads after investigations, only to have them reappear in ad libraries shortly after.

One of the reasons why the ads continue is because they are heavily invested in. For example, Singapore-based online casino Hellcase spends millions on Google ad campaigns and partners with YouTube influencers to reach millions of potential customers. The problem is that the casino does not provide a mandatory age verification process for users.

Australian regulator ACMA has expressed particular concern about skin betting services, as they target young people and can turn gamers into gamblers. In May 2023, ACMA took action against the CSGORoll website for violating local laws, but the site’s ads continued to appear on Google. In June, Google announced that the CSGORoll account was no longer active, but the ads remained visible in Australia until July.

On a global level, CSGORoll spent $2.4 million on Google Search advertising in the first half of this year. Google allows gambling advertising in countries where the advertiser has a valid license, but CSGORoll does not provide proof of a license.

So, despite strict rules and prohibitions, skin gambling continues to grow, which poses significant risks to underage users.