Expert blog: Skins gambling - where gaming meets gambling

In recent years, the line between gaming and gambling has become increasingly blurred. One of the most striking examples of this convergence is the rise of "skins gambling”, where players wager virtual items (or "skins") acquired in video games on third-party online casinos. These digital assets, often cosmetic in nature for in-game characters or weapons, have taken on real-world value, creating a shadow economy that is largely unregulated and alarmingly accessible.

A recent report commissioned by the Department for Culture, Media and Sport (DCMS) sheds light on this emerging phenomenon, revealing its scale, risks, and implications for public policy. As the author of that report, along with my colleagues Dr Erin Gibson and Distinguished Professor Emeritus Mark Griffiths, I want to unpack the key findings and explore why skins gambling demands urgent attention from parents, researchers, regulators, and the gaming industry.

What is skins gambling?

Skins gambling typically involves staking virtual items on games of chance hosted on third-party websites. These platforms often mimic traditional gambling formats with e.g., roulette, dice, and slot machine-style games, but contain themes associated with the videos games where the skins originate (such as Counter-Strike Global Offensive (CSGO) and Rust).

The rise of skins gambling has been accelerated by the use of open Application Programming Interfaces (APIs), which are essentially digital bridges that allow third-party gambling platforms to seamlessly integrate with popular gaming ecosystems like Steam, enabling real-time item valuation, inventory access, and automated betting mechanics.

Crucially, many of these sites operate outside legal jurisdictions, lack age verification, and are easily accessible to children and young people. This matters because the mechanics of skins gambling, especially its links to loot boxes and fast-paced gameplay, are designed to be engaging, even addictive. For younger players, who are more vulnerable to gambling-related harm, this can serve as a gateway to more traditional forms of gambling.

The scale of the problem

The report identified over 50 skins gambling websites accessible from the UK. In February 2025 alone, these sites attracted 6.9 million unique visits globally, with the UK accounting for nearly 4% of that traffic. Some skins gambling platforms even outperformed well-known betting sites like Betfred and Betway in terms of monthly visits.

Website analytics data and the academic literature converge in that skins gambling is disproportionately common among adolescent males. Children aged 11–14 were found to be more than twice as likely to engage in skins gambling compared to young adults aged 22–24. This suggests that gambling behaviours are being introduced at a much earlier age than previously thought.

Skins gambling is not just a quirky offshoot of gaming culture, it is a serious public health concern. The reviewed research consistently showed that individuals who engage in skins gambling score higher on measures of problem gambling severity. These players are also more likely to have bought loot boxes, played games with gambling content, and transitioned into monetary gambling. Importantly, the link between skins gambling and gambling harm persists even when controlling for other (non-skins) gambling behaviours. This suggests that skins gambling may be a distinct risk factor and not merely a symptom of broader gambling engagement.

Game design: familiar mechanics, new risks

Many skins gambling games borrow heavily from traditional gambling formats. Loot boxes resemble slot machines, complete with near misses and variable reward ratios. "Double" games mimic roulette wheels, while other formats introduce competitive elements that heighten risk-taking. These games often include features known to exacerbate gambling harm, such as rapid speed of play, losses disguised as wins, and the illusion of control. The result is a potent mix of psychological triggers that can hook players, especially younger one, into repeated play.

Policy challenges and recommendations

Despite meeting the legal definition of gambling in Great Britain, most skins gambling platforms operate without licences. Enforcement is hampered by the international nature of these sites and their ability to rebrand or relocate with ease.

The report calls for coordinated international regulation that classifies skins gambling as gambling and holds operators to the same standards as traditional platforms. This includes mandatory age verification, transparency, and responsible gambling protocols. Game developers must also be held accountable for gambling-like mechanics embedded in their games.

Skins gambling is not just a niche concern, it is a growing public health challenge that sits at the intersection of digital entertainment, consumer behaviour, and youth vulnerability.

The full report can be found here at gov.uk.

Dr Andrew Harris, Senior Lecturer in Psychology

Find out more about the Cyberpsychology Research Group at NTU