The Quinault Nation, a native Indian tribe from Washington State, has alleged that Valve Software is dealing in illegal gambling activities through skins betting activity.
The Indian Nation has filed a lawsuit against the software company and has said that Valve is providing and promoting illegal gambling through skins betting in video games like Counter-Strike: Global Offensive (CS: GO) and others.
The tribe also argues that this kind of gambling activity takes a fair chunk of their legal gambling revenues as it gives the software company an advantage in the state gambling industry.
The lawsuit alleges unfair competition and mentions that “Valve is well aware of the skins gambling that goes on, is well aware that skins have real-world cash value…and actively encourages and facilitates skins gambling.” The tribe also alleges that because they have no gambling license they are unfair to the gambling operators who are operating in the regulated market and therefore such activities should stop.
For Valve, it is not the first time they have been into the court defending a lawsuit. In 2016, following the Quinault lawsuit, the company had to send cease-and-desist orders to a number of skin gambling sites.
Alleging Valve’s reluctance to check illegal skin gambling the lawsuit points out that though the company is not directly offering skins betting “It (Valve) has profited handsomely for years from illegal online gambling, and has made only token efforts to stop it.”
It also mentions that according to the precedence in Washington it has been established that that “Skins were a thing of value in that what the users were doing was gambling and was illegal.” As such, it is very likely that Valve could be in trouble with the Quinault Nation lawsuit.