How Big Tech Helps “Skin Gambling” Casinos Target Young Gamers
In May of 2024, Ontario police arrested a man named Aiden Pleterski, who was
accused of stealing tens of millions of dollars from investors as part of a crypto scheme. After declaring bankruptcy, Pleterski attempted to illegally transfer $430,000 USD in video game assets; namely, he bought and sold “skins” for the video game Counter-Strike. These virtual collectibles allow players to change the appearance of their characters or weapons, and can fetch incredibly high prices on the secondary market. In June, a single Counter-Strike skin
sold for over $1 million, and
entire websites are devoted to tracking the values of different assets. Now,
reporting from Barron’s reveals that unlicensed virtual casinos are capitalizing on this subculture, allowing players to use skins as currency to gamble. The casinos market themselves to players using advertisements on platforms like Instagram, where young gamers are likely to see them. Together, the gambling websites identified by Barron’s gave Google over $28 million for search advertising – despite the fact that Google does
not allow advertisements for unlicensed, online casinos.
Skin gambling websites also placed flashy advertisements on Meta platforms, according to the company’s own
Ad Library. These ads appeared to violate Meta’s policies, but Tech Transparency Project Director Katie Paul told Barron’s that Meta had already failed to detect
test advertisements promoting gambling to children, and approved them for circulation in less than 60 seconds. While Big Tech companies run ads for these illicit casinos, a
growing body of
evidence suggests that skin gambling is associated with gambling-related harms, and could serve as a gateway for more serious addiction.