Norway’s Gaming Authority is warning online video game “skins” betting sites that the practice is defined as gambling in the country and operators could face legal sanctions,
Skins betting is the trading and gambling of special objects in video games such as Counter Strike: Global Offensive. Players can trade the items—such as special weapons—for cash. The practice is largely unregulated and often involves underage players.
The authority issued a statement saying the skins constitute a virtual currency.
“Skins can normally not be exchanged for cash, but it is possible to take the skins out of the game and of other markets for buying and selling,” the statement said. “There are separate online casinos where you can bet and win skins, and in such cases, skins become a virtual currency that can be used for gambling. We have seen several examples of Norwegian children and young people who have spent from this.”
The authority concluded that skins betting is in their jurisdiction.
“A gaming site that allows betting and pays out prizes in skins is in our view an online casino, and in Norway, only Norsk Tipping is allowed to offer online casino,” the statement said.
Several other European gambling regulators have also begun to analyze skins betting, including the UK Gambling Commission which is requiring skins operators to gain a gambling license.
