Valve Hit With Illegal Gambling Lawsuit

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  • State tribe claims Valve helps in facilitating scams and unfair gambling

  • A 2016 suit against the company was thrown out of court

  • Valve had previously sent out cease and desist orders to third party online gambling operators


The Quinault Nation in Washington State has filed a lawsuit against the developer of eSports online gambling skins.

The tribe owns and operates Quinault Beach Resort & Casino in Ocean Shores, Wash.

Valva is based out of the state of Washington. 

From GeekWire:

It alleges that Valve has facilitated the use of textured digital weapons, known as “skins,” in games such as Counter Strike: Global Offensive as collateral in online betting through third-party sites. The lawsuit argues that through so-called “skins gambling” Valve has “subjected Washington citizens to scam, unsafe and unfair gambling.”

“Valve is well aware of the skins gambling that goes on, is well aware that skins have real world cash value, which has increased their popularity and value, and actively encourages and facilitates skins gambling,” according to the suit, filed last week in Grays Harbor County, where Quinault’s tribal government headquarters is located.

In 2016, a judge dismissed a class action lawsuit against Valve over alleged illegal gambling with Counter Strike: Global Offensive.

The company has long insisted it does not maintain relationships with third party gambling operators.  In 2016, the company sent cease and desist letters to 40 of its streaming partners, severing ties with some.

Washington is the only state that makes placing a bet online a class felony.

- Jagajeet Chiba,

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