Valve Software Sued by Native American Nation in Washington Over Skins Betting

Valve Software has been named in a lawsuit brought by the Quinault nation in Washington State over ‘skins” betting in video games like Counter Strike: Global offensive. The suit charges that the company has been undermining regulated gambling in Washington through the unregulated video game betting. The suit charges that skins betting also subjected state residents to unfair and unsafe gambling.

Valve Software Sued by Native American Nation in Washington Over Skins Betting

The Native American Quinault Nation has sued Valve Software for allowing illegal “skins” betting in Washington State through games like Counter Strike: Global offensive.

The Quinault Nation owns the Quinault Beach Resort & Casino in Ocean Shores, Washington and alleges in the suit that Valve has facilitated the use of skins for gambling unregulated by the state.

Skins are digital items or abilities—usually weapons in the case of Global Offensive—that are valued in the game by players. They are often traded and gambled for real money at third party sites.

The lawsuit argues that gambling skins 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.

Valve is based in Bellevue, Washington. In 2016, a judge dismissed a class action lawsuit against Valve over alleged illegal gambling within Counter Strike: Global Offensive.

The company has said it has no relationship with third-party gambling sites. In 2016, Valve said it sent cease-and-desist letters to more than 40 of these sites that use the company’s Steam gaming marketplace for gambling and shut down the Steam accounts used by those sites.

The lawsuit, however, says that despite those actions, Valve continues to facilitate skins betting.

“Valve has profited handsomely for years from illegal online gambling, and has made only token efforts to stop it,” the lawsuit says.

The lawsuit also claims skins betting hurts casinos by creating an un-level playing field where casinos have to adhere to gambling regulations and the game maker does not.