Native American Casino Sues Valve Over CS:GO Gambling Sites

Most people won't argue if you claimed that gambling was bad. Even fewer would argue against things like CS:GO skin gambling, the largely illicit act of wagering digital game skins online. A Native American tribe is actually pressing legal action against Valve themselves for allowing it to happen, harming their casino business as a result.

Reported by Geekwire, the Native American Quinault Tribal Nation is suing Valve. As the operators of the Quinault Beach Resort and Casino, they claim that Valve is engaged in "unfair competition," by allowing third-party gambling sites to operate on Steam-based digital items, such as CS:GO weapon skins. They claim that Valve does not have a license to operate with gambling in the state of Washington and is not following local gambling regulations as a result.

"As a licensed operator of gambling facilities in Washington, the Nation must incur costs, expenses, and effort to ensure strict compliance with all gambling laws and regulations.
. . .
"Neither Valve nor internet gambling sites using Valve's virtual items abide by those gaming laws and regulations and consumers and the National have been harmed as a result."

- The official filing

The Quinault Tribal Nation claims that since Valve takes a 15 percent cut on items traded through the Steam Marketplace, they are directly profiting off of trades made through these gambling sites. They also point at the loot boxes that the CS:GO skins come from, claiming that while they have the same concept as a slot machine, they are not required to display the odds to users.

The Quinault Tribal Nation is seeking damages suffered, restitution of all monies wrongfully obtained by Valve, and for the developer to cease and desist its alleged facilitation of illegal gambling.

Valve has stated multiple times in the past that they have no relationship with the third party betting sites that incorporate the skins.

As against video game gambling that I am, this doesn't feel correct. The Quinault Tribal Nation is going after the big, wealthy company that is indirectly involved, instead of the gambling websites that are actively doing the reported lawbreaking. This is like suing Ford because someone used an F-150 to rob your house.

Though there is a poetic irony to a casino company complaining about someone not being fair.