Gambling sponsorships are nothing new in sports betting. Nor are they a stranger to esports, either. In fact, some may argue esports and gambling have a tighter relationship than bookmakers and traditional sports betting fans, owing to the interactive elements intertwined within them. Many fans spend hours playing these titles each week, all while following their favourite teams and players as they compete for trophies and glory.

A gambling economy worth billions

Another interactive element to this relationship is skin gambling. Skin gambling manifests itself in a few different ways. Players can either directly stake their in-game skins on the outcome of games, or they can acquire lootboxes or skins to then sell for real-world money. Both of these drive an underground gambling economy that is worth billions. A 2025 UK Government review found that some of the skin gambling sites targeting British customers were bringing in more traffic than Betway and Betfred.

As such, it made sense for skin gambling sites to begin sponsoring popular esports teams and events. All of this aside, skin gambling is actually unlicensed and illegal in most jurisdictions – and frowned upon by many of the casual fans. While many of them could overlook the skin gambling sites as part of the ecosystem, a few events seemed to turn the tide against these operators.

During the 2024 CS2 Major in Copenhagen, fans stormed the stage as part of an initiative from CSGO Empire, who were protesting against rival skin website CSGORoll, which CSGO Empire deemed a “scam.” Neither company had a relevant gambling licence. “Some of our men are on the ground in handcuffs. But we ******* did it, boys,” CSGO Empire Founder ‘Monarch’ wrote on Twitter (X) immediately after the stunt, but what “it” was remained ambiguous; as one year later, Valve stepped in to ensure that no skin gambling content can be shown during broadcasts.

Valve IP

Everyone involved in esports was making a mint from these skin gambling sites. They were sponsoring players, teams and quite often the events themselves. There was too much money flowing to stop the momentum, but one party did not consent to this: Valve. This company created and owned CS2, one of the largest esports games, and so they had a significant say over how these games could be played. Valve updated the terms and conditions to say that licensees could not show anything on jerseys that violates Valve IP, “for example, game case opening sites or skin trading sites” and nor can licensees “generate revenue through activities that violate applicable Valve agreements or violate local law or rely on Valve’s game economies.”

Valve has also made it easier to gain some of the most expensive items in the game, such as the knives, through another recent update. All of this is part of an initiative to reduce money passing through the game and platform in potentially illicit manners that may induce regulatory action. Also, it simply does not look good for Valve to be so tightly linked to illegal gambling sites through these sorts of events. In response to the ban, fans took to social media sites such as Reddit to applaud the decision, mostly lamenting how illegal skin gambling sites prey on children as part of their business model.

So, how will this affect the esports scene? Well, after gambling logos were banned from football jerseys, clubs have been forced to find less lucrative sponsors, because gambling was the issue. In terms of esports, only unlicensed skin gambling sites are banned from jerseys, leaving potential sponsorship spots open for regulated casinos. If sportsbooks wanted to push their esports offerings and gain exposure, this ban has presented a wonderful opportunity for them.