Game Maker Valve Ordered to End Support of Black-Market Gambling

  • Firm received cease-and-desist letter from state regulator
  • $1 billion in ‘skins’ bets handled by one site through July
Photographer: Andrey Rudakov/Bloomberg
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The Washington state gambling commission has taken action against game maker Valve Corp., the first time a U.S. regulator has attempted to crack down on a multi-billion-dollar online gambling market that uses virtual items earned in video games as currency.

“In Washington, and everywhere in the United States, skins betting on sports remains a large, unregulated black market for gambling,” Commissioner Chris Stearns said in a statement. “And that carries great risk for the players who remain wholly unprotected in an unregulated environment.”