Slashdot Mirror


Valve Denounces Third-Party Gambling Sites, But Won't Block Them (arstechnica.com)

Valve is finally addressing the last week's Counter-Strike gambling scandal. The game maker and Steam operator says that it does not directly profit from these gambling sites' actions. In a statement, Valve's Erik Johnson said the following: We have no business relationships with any of these sites. We have never received any revenue from them. And Steam does not have a system for turning in-game items into real world currency. Johnson added that gambling sites work by creating and maintaining their own Steam accounts, which are used to conduct virtual item trading. He adds:Using the OpenID API and making the same web calls as Steam users to run a gambling business is not allowed by our API nor our user agreements.Steam's user agreement includes a passage that forbids "exploiting the Content and Services or any of its parts for any commercial purpose, except as expressly permitted elsewhere in this Agreement." The company won't block these websites, but says it will begin cracking down on them -- by sending them cease and desist notices.

32 comments

  1. Reading comprehension by Anonymous Coward · · Score: 1

    Valve:
    We are going to start sending notices to these sites requesting they cease operations through Steam, and further pursue the matter as necessary.

  2. Won't block them? by trawg · · Score: 2

    The statement by Erik Johnson ends with the following:

    "Using the OpenID API and making the same web calls as Steam users to run a gambling business is not allowed by our API nor our user agreements. We are going to start sending notices to these sites requesting they cease operations through Steam, and further pursue the matter as necessary."

    It might just be too hard/risky/boring for them to actually actively block these users so sending them a letter asking them to stop is probably a fair starting point.

    1. Re:Won't block them? by Murrdox · · Score: 4, Insightful

      The way I understand it, it's actually impossible for them to "block" these services. There would be two ways they could "block" the services, and both of them would have extremely high impact to Steam. First, they could ban the Bots who are collecting and trading the skins that are being gambled on. We all know that this would only be a temporary measure. More bots would simply be created to replace those banned. Secondly, they could alter the API for Steam to prohibit the type of trading that is occurring. However, they would break a lot of legitimate functions if they went this route. So saying that Steam "won't block" the gambling is being pretty disingenuous. It'd be like if Major League Baseball could "block" betting on baseball games by not posting scores online. That's really not a valid or realistic solution to the problem. It certainly looks like Steam is taking active steps to shut the gambling sites down.

    2. Re:Won't block them? by Skuld-Chan · · Score: 1

      Why not require they have a key or cert before they can use the API? Google does this actually.

      Don't issue certs to known entities who abuse their api.

    3. Re:Won't block them? by phorm · · Score: 3, Informative

      The Steam API *does* require a key. I know this because I've used it and I have a key.

      There are things you can pull from the site without using the API/key though, but I'm not sure that these sites could function without one

    4. Re:Won't block them? by rocqua · · Score: 1

      Make gambling against the rules, try and ban bots. Then, to give some credence to the rules, any items received from a gambling bot will be destroyed.

    5. Re:Won't block them? by DRJlaw · · Score: 1

      First, they could ban the Bots who are collecting and trading the skins that are being gambled on. We all know that this would only be a temporary measure. More bots would simply be created to replace those banned. Secondly, they could alter the API for Steam to prohibit the type of trading that is occurring. However, they would break a lot of legitimate functions if they went this route. So saying that Steam "won't block" the gambling is being pretty disingenuous.

      The Steam API *does* require a key. I know this because I've used it and I have a key.

      You're not actually disagreeing with each other. The GP did not say that accounts could not be blocked (e.g., keys blocked or revoked). The GP is merely saying that Valve would have to engage in account-by-account whack-a-mole (with the inevitable false positives) and the gambling sites would adapt their use to be more dispersed and more similar to users (increasing the false positive risk). Or, alternately, remove the functionality for everyone -- the "this is why we can't have nice things" trope writ large.

      Valve's current strategy is actually more likely to be effective. Cease and desist letter (not effective), then lawsuit (minimally effective), then injunction (modestly effective), then obtain the cooperation of payment processors (surprisingly effective and easy once you have a court document that ties the activity to heavily regulated gambling/money laundering-related activities). You can't kill it all, with bitcoin and flying below the radar (like many torrent sites), but you can suppress your problem.

  3. I don't think it's going to save them by H3lldr0p · · Score: 1

    It may well have been against the ToS but if they did nothing to revoke access after being told of it, they're still likely in a world of financial hurt. Their position isn't helped once it becomes clear that these items, while only cosmetic, do have a rarity to them that the gambling sites used.

    I suspect that age verification is going to become a thing that Valve has to come up with and enforce if they plan on making out of the two current lawsuits without having state law enforcement crawling around looking at things.

    1. Re:I don't think it's going to save them by Anonymous Coward · · Score: 0

      Valve are in the middle of a huge class action lawsuit. The gambling market is claimed to exceed $2bn, and that is pure sales through Steam for virtual tat. There's no way Valve are going to lock out this gambling market without a massive legal fight; a fight that will drag on for years while they cream in over $700m/yr on the back of it.

      Once the game is up, they'll "settle" for an undisclosed fine. However, the EU will hit them a lot harder, should it be around for long enough to take them to the European Courts for illegal commerce.

  4. What about the coming IRS smack down? by Joe_Dragon · · Score: 1

    What about the coming IRS smack down?

    Maybe they can pull an Al Capone like thing hear.

    1. Re:What about the coming IRS smack down? by Captain+Splendid · · Score: 1

      Doubt it. They make you fill out paperwork if you sell too many items on the market. IRS has everything they need so far.

      --
      Linux, you magnificent bastard, I read the fucking manual!
  5. Rent seekers suck by HBI · · Score: 1

    Everyone wants a piece of the action. That's what this is all about.

    --
    HBI's Law: Frequency of calling others Nazis is directly correlated with the likelihood of the accuser being Communist.
    1. Re:Rent seekers suck by Anonymous Coward · · Score: 0

      Same thing happened to Starbucks and taxing tips. I worked for them while in school back between 99 to 04. In 04 the Gov went to Starbucks and said you either start taking tax out of your employee's tips or we'll retroactively go back 5 years and fine everyone who worked for you. That was the last straw for me and I bailed but I assume they just went along with taxing the tips.

  6. The gambling isn't the problem... by bradley13 · · Score: 1

    Lots of people like to place the odd bet. That's not the problem. The problem with gambling are the scams, and this is nothing unique to online activites.

    Consider sports - let's take the specific example of tennis. The players at the very top can live off of their winnings and their sponsors. Then comes a long list of hundreds of players who are up-and-coming, or down-and-going, or just wannabes. They need to travel to tournaments, they need to pay a coach, they need good equipment, and train too much to work a normal job. This is where the betting - and the scams - happen. A match comes up between two no-name players. Some goon comes up to the one with the better ranking and says: "I'll pay you $10k to make sure you lose the second set". Then the betting house hypes the game, and start taking bets. After the better player wins the first set, the odds for the second player get long. The betting house pushes betting on the next set - knowing that the lower-ranked player is going to win, this is where they rake in the dough.

    This kind of stuff is almost impossible to detect, much less prove. It's no different in the realm of electronic games and e-sports: there are gambling sites that specifically focus on this area..

    Should one even try to squash this? There's something wrong with writing unenforceable laws, after all. Maybe we just just let suckers lose their money.

    If we do want to try to keep gambling sites honest, we need some way to detect cheating and scams. But how?

    --
    Enjoy life! This is not a dress rehearsal.
    1. Re:The gambling isn't the problem... by Lab+Rat+Jason · · Score: 1

      I totally agree with this except for one point: Gambling is an addiction, and just saying

      Maybe we just just let suckers lose their money

      removes our humanity from us. I'm not big on regulations, but allowing people to drown in debt is just as legal, and just as reprehensible as letting someone drown in actual water.

      --
      Which has more power: the hammer, or the anvil?
    2. Re:The gambling isn't the problem... by bradley13 · · Score: 1

      You're right: gambling addicts have a genuine problem. But, again, it's not a problem with gambling per se, but a problem of addiction. Not everyone who like beer is an alcoholic, and not everyone who enjoys betting is a gambling addict.

      For those who do have a problem, driving the industry underground tends to worsen the situation. Prohibition was a failure, the "war on drugs" is a disaster. Better to legalize the activity, so that addicts can come for help without automatically being criminals.

      All of which still leaves us with the question of how to deal with scams and cheating. While one would like to hang scammers out to dry, it's very difficult to catch them, much less prosecute them. Ideas?

      --
      Enjoy life! This is not a dress rehearsal.
    3. Re:The gambling isn't the problem... by Anonymous Coward · · Score: 0

      >removes our humanity from us

      Human society removed our humanity from us. Stop using this stupid statement.

      We are nothing but animals out to beat others to procreate. People that stray from that are going against the very nature of humanity, of life itself.
      Society IS regulation. It is a moderator of actions to ensure an equal-ish footing.
      Of course, said society is also run by people that favour the former statement rather than the latter, so society ends up being unequal since these people write the laws and run the countries.

      A minimal amount of regulation and control is fine. But nannying stupid people is only a Bad Thing.
      As Bradley said, it is basically impossible to regulate and ban. So don't.
      Educate, not regulate. It is the only sane way.
      Banning is an even more stupid thing.

    4. Re: The gambling isn't the problem... by Anonymous Coward · · Score: 0

      Every time I volunteer I prove your cynicism wrong.

    5. Re:The gambling isn't the problem... by Anonymous Coward · · Score: 0

      I agree that gambling by itself isn't the problem, but neither are the scams really.

      The real issue is that they cater to kids who start gambling with skins at 8 years old, which can lead to a gambling addiction.

  7. Valve didn't want to be the bad guy by Anonymous Coward · · Score: 1

    Valve couldn't shut off the API accounts immediately because then all of the users would lose their stuff and Valve would be the bad guy.

    Instead Valve says they are going to crack down causing a 'bank run' of users withdrawing their stuff from the gambling sites. Some users will get their stuff back, others won't as website owners cut and run. Valve won't take as much of the blame as users will be upset at the gambling sites who never returned their items.

    Valve can then actually block the APIs a month from now and get rid of them for good.

  8. Civilization by Anonymous Coward · · Score: 0

    If Civilization is any indicator, they will be going to war in about 5 turns.

    1. Re:Civilization by Anonymous Coward · · Score: 0

      Came to post similar joke, mod points instead!

  9. Gambling by Anonymous Coward · · Score: 0

    So does steam view these site as gambling or not?

    .

    1. Re:Gambling by Joe_Dragon · · Score: 1

      That is a question for the courts and not us

    2. Re:Gambling by CmdrTamale · · Score: 1

      A mark once asked W C Fields, "Is this a game of chance?"
      to which he of the prominent proboscis replied, "No, not the way I play it."
      --
      The first thing you do when you find a $100 bill is ask "Why me?"

  10. They should be happy to have a gambling community by mike2006 · · Score: 0

    I do not use it and do not gamble but why piss in some users cheerios if they want to pursue that option and it keeps them using Valve. It is authoritarian anti-liberty BS that drives people away from their hobbies such as this.

  11. Effective! by Anonymous Coward · · Score: 0

    About as effective as litigating for years to block The Pirate Bay only for them to buy another domain.

  12. Re:They should be happy to have a gambling communi by Anonymous Coward · · Score: 0

    In some of the localities they operate gambling is not allowed. Instead of risking having their service blocked in those places which will cost them money, they shut down the gambling which makes them no money.

    This has nothing to do with them being authoritarian or anti-liberty. That's just your bias coloring the facts. Stop it.

  13. Re:They should be happy to have a gambling communi by mike2006 · · Score: 1

    If it is a 3rd party operating a gambling site where it is illegal then they would get shut down and not valve. Like I said I do not use it or gamble, so no bias here.

  14. Gamblin bad mmmk by Anonymous Coward · · Score: 0

    Why the Hell should they have a say how people spend their money?

    1. Re:Gamblin bad mmmk by Anonymous Coward · · Score: 0

      Because Valve retains a certain degree of ownership of all digital goods on the Steam platform. This is identical to online RPGs who retain ownership of all items on your character. This exists to protect them so that if they shut down, people can't walk up and say "The agreed-upon market value of these items is $50 each and I have 15,0000 of them".