ACMA targets a gambling site that uses CS:GO skins as currency

The Australian Communications and Media Authority (ACMA) remains the country’s gambling industry custodian having already banned 747 illegal gambling sites over various breaches. In one of its latest enforcement actions, ACMA targeted Feral Holdings Limited, an online gaming company, which was given a formal warning because of the latter’s CS:GO Roll website which has since withdrawn from the Australian market after it was found to be offering what the regulator described as prohibited interactive gambling services.

ACMA spearheaded an investigation against the service and discovered that CS:GO Roll was offering various casino-style online games. Interactive gambling is prohibited in the country under the Interactive Gambling Act 2001. The specific product CS:GO Roll was offering was not a traditional casino game, however.

Rather, users at the websites were allowed to deposit skins – customizable and cosmetic digital wares that are used in the popular video game by Valve, Counter-Strike: Global Offensive. The website would then exchange the skins for in-game coins that only then allowed players to play various casino-style games.

Winnings would be again paid out in the form of skins. This practice though is prohibited both by Valve, and under the country’s laws. Furthermore, ACMA-contended skins can be then converted into real money through the use of third-party software. Skins have been a hot-button topic for Valve and gambling regulators.

A series of lawsuits were launched against Valve, the publisher of CS:GO, in 2016. The last of the claims against the company was dismissed earlier this year. Ever since, Valve has made it explicitly known that it would ban player accounts that were tied to skin gambling. However, the manner in which CS:GO Rolls attempted to advertise and use its products had not eluded ACMA which is ever-vigilant over the market.

Commenting on the nature of this gambling operation, ACMA Chair Nerida O’Loughlin said that all gambling sites in Australia must comply with local items and not try to use alternative currencies to find a loophole that did not exist.

"Providing casino-style games online is prohibited in Australia when playing for money or something of value, whether that’s Australian dollars, cryptocurrency or in this case, online gaming skins," O’Loughlin stated. Another reason for worry is the fact that skin gambling is geared towards younger customers and may impact younger players by leading them into a path of gambling.

ACMA also recently blocked three casinos and affiliate websites, including Highway Casino, Online Casinos Australia and Vave.

Image credit: Valve