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CSGO Lotto and owners sued over ‘illegal gambling’ allegations

blastprocessor

The Amiga Brotherhood
tmartn's network dropped him??

9dET5IB.png

Did he have one? Plenty big youtubers don't.
 

LordRaptor

Member
I am sure they would have to sign an agreement for not using anything provided by valve for illegal activities.

But in many places gambling is not illegal, and it is not Valves job to police the internet, so what legal basis would Valve have to send a cease and desist?

If someone were running a site pretending to be affiliated with Valve, that would be c&d worthy, but as far as I can tell nobody is making such a claim.
 

TheYanger

Member
Whats makes you say this? Pretty tough accusations you´re making there!

Not really. This is exactly why employees of any gambling outfit aren't allowed to play there. They have access that means they can rig shit if they want to, ergo it's impossible to say that they didn't with any confidence.

Realistically though, the levels of winning all of these guys HAPPEN to show are extremely unlikely, let alone for all of them.

But in many places gambling is not illegal, and it is not Valves job to police the internet, so what legal basis would Valve have to send a cease and desist?

If someone were running a site pretending to be affiliated with Valve, that would be c&d worthy, but as far as I can tell nobody is making such a claim.

What do 'many places' have to do with it? In many places it IS illegal, including where Valve is operating at. You're acting like Valve can't just send a C&D to literally anyone they want. You're acting like Valve is literally helpless with their hands tied behind their backs, as though the law is going to prevent them from doing what they want with their own system to prevent gambling sites. All they have to do is update their TOS or EULA or whatever they want and start acting on it.
 

Loxley

Member
Whats makes you say this? Pretty tough accusations you´re making there!

I think what people are saying is, given their outed deception already, it's not too big of a stretch to imagine them rigging the results in their favor. There's no tangible evidence to suggest they were doing that (at least not yet), but folks wouldn't be surprised to find out if they had been manipulating the system. It certainly would have been in their power to do so as owners and operators of the site.
 

Sifl

Member
Whats makes you say this? Pretty tough accusations you´re making there!
Serious response: It wouldn't be that unlikely that the results were rigged with their videos where they were winning thousands of dollars as a way to promote the website. I'm not aware if the people they were betting against were in on it, were just random players using the site or if they fixed any results outside of the videos they made (or even in the videos they made,I'm just going off h3h3's line of thinking about not disclosing they were the owners and actually having the ability to alter the results for promotion reasons)

Non serious response: I'm currently looking for a squirrel to put in my apology video for misleading you.
 

quest

Not Banned from OT
Serious response: It wouldn't be that unlikely that the results were rigged with their videos where they were winning thousands of dollars as a way to promote the website. I'm not aware if the people they were betting against were in on it, were just random players using the site or if they fixed any results outside of the videos they made (or even in the videos they made,I'm just going off h3h3's line of thinking about not disclosing they were the owners and actually having the ability to alter the results for promotion reasons)

Non serious response: I'm currently looking for a squirrel to put in my apology video for misleading you.

The people they won against were not in on it. If you listen to the podcast below several of the people who lost to the streamers are looking into a class action suit. The podcast is well worth a listen to on the whole subject.

http://espn.go.com/espnradio/play?id=16802961
 

Yukinari

Member
Im really glad that this wasnt one of those situations where the internet brushes it under the rug and forgets about it after a week. I was positive it was gonna involve legal action eventually when i first heard about it.
 

Concept17

Member
So he apologized while giving the perfect angle of his huge house and his truck parked perfectly over his shoulder?

The way he was not only blinking, but closing his eyes while he was apologizing was pretty great, too.
 

LordRaptor

Member
What do 'many places' have to do with it? In many places it IS illegal, including where Valve is operating at.

No it isn't, Washington has not declared gambling illegal, and explicitly declares things like, bingo, raffles and amusement games as exempt from gambling statutes, as it rules them not to be gambling.

You're acting like Valve can't just send a C&D to literally anyone they want. You're acting like Valve is literally helpless with their hands tied behind their backs, as though the law is going to prevent them from doing what they want with their own system to prevent gambling sites. All they have to do is update their TOS or EULA or whatever they want and start acting on it.

No, I am saying that Valve are under no obligation to dictate the actions of what people do with virtual goods.
The concept of 'ownership' of virtual items is nebulous enough that it does not need additional erosion by making declarations of controlled intent of purpose.

Currently, if you buy a virtual item from Valve, it is yours to do with as you see fit; you can trade it, you can gift it, and yes, you can gamble it. That is - in my opinion - as it should be.

e:
The leglity of gambling sites using those items is entirely the responsibility of the people running those sites.
Just as it is not youtubes job to police any video uploads for potential conflict of interest from youtubers promoting goods or services they have a stake in.
 

PtM

Banned
Blizzard acts against shady shit like bot makers and stuff all the time. They actively seek out and ban accounts that are heavily involved in gold selling and the black market. Hell, they have an automatic flagging system to do it. Does it catch everyone? no. But Valve doesn't try to stop anyone, they could easily do the same. I'm sorry, but CSGOLOTTOBOT#15 who makes 30 transactions an hour is probably not a legitimate steam user. It's not hard to flag accounts for suspicious activity. A legitimate high volume user can be whitelisted (that's what Blizzard does in wow). Most people that are doing more than a handful of trades in a day, especially trades that aren't remotely of equal value (IE: nothing else at all in fact) are almost inevitably up to shady shit.
Good argument.
 

shira

Member
The people they won against were not in on it. If you listen to the podcast below several of the people who lost to the streamers are looking into a class action suit. The podcast is well worth a listen to on the whole subject.

http://espn.go.com/espnradio/play?id=16802961
These dudes might get jail, penalties from the FTC or have Youtube earnings reversed - but I don't think there is any way for those people who gambled to get compensation.
 

malfcn

Member
It's also nice to think that when they did lose, or refunded items.. They were probably someone else's items to begin with..
 

thefro

Member
These dudes might get jail, penalties from the FTC or have Youtube earnings reversed - but I don't think there is any way for those people who gambled to get compensation.

Well, Valve's a party to the current lawsuit, so a judge could certainly force them to restore items that were traded on CSGO Lotto.
 

Haunted

Member
I'm completely clueless as to how gambling laws work in the US.

As a layman it certainly looks like they were involved in some shady shit with how they were not disclosing ownership/affiliation of a product they advertised, but no idea if the core business of the website itself is illegal.
 
Blizzard acts against shady shit like bot makers and stuff all the time. They actively seek out and ban accounts that are heavily involved in gold selling and the black market. Hell, they have an automatic flagging system to do it. Does it catch everyone? no. But Valve doesn't try to stop anyone, they could easily do the same. I'm sorry, but CSGOLOTTOBOT#15 who makes 30 transactions an hour is probably not a legitimate steam user. It's not hard to flag accounts for suspicious activity. A legitimate high volume user can be whitelisted (that's what Blizzard does in wow). Most people that are doing more than a handful of trades in a day, especially trades that aren't remotely of equal value (IE: nothing else at all in fact) are almost inevitably up to shady shit.

To be honest, this is probably a good argument for why Valve doesn't bother. Blizzard spends (or used to spend) a ton of resources trying to clamp down on black market dealings, yet WoW has still had, for over a decade, a massive industry built entirely around stealing accounts, hacking, phishing, and filling game worlds with bots. Like CS:GO, there were and are entire companies and websites that do nothing but provide a method of converting gold to cash.

The WoW Token was explicitly an acknowledgement that conventional methods of combating black markets were completely ineffective, and that the only way to put a dent in them are through competing with them directly (which Valve already does).
 

TheYanger

Member
To be honest, this is probably a good argument for why Valve doesn't bother. Blizzard spends (or used to spend) a ton of resources trying to clamp down on black market dealings, yet WoW has still had, for over a decade, a massive industry built entirely around stealing accounts, hacking, phishing, and filling game worlds with bots. Like CS:GO, there were and are entire companies and websites that do nothing but provide a method of converting gold to cash.

The WoW Token was explicitly an acknowledgement that conventional methods of combating black markets were completely ineffective, and that the only way to put a dent in them are through competing with them directly (which Valve already does).

I...what? Way to completely misunderstand. Blizz does this BECAUSE of the murky legal waters (in game gambling they shut down, which is VERY tame and benign compared to the CS:GO stuff, literally people playing with monopoly money) and to protect customers, saying they 'waste' resources is crazy, they're 'wasting' resources protecting customers and handling customer service complaints. Meanwhile Valve basically doesn't have customer service AND doesn't stop the sites, it's the worst of both sides of the deal. The wow token isn't an admission that you can't stop the black market, it's moreso simply win/win from a business perspective from them and tapping an aspect of the internet that actively harms their customer base. They don't suddenly cease policing the black market as best they can because of it.

It's baffling to me how much you go out of your way to try and twist logic to favor valve.

Your first sentence says it all: "To be honest, Blizzard takes care of their customers and tries to avoid the illegalities inherant to internet gambling, and it costs them money to do so, Hence valve doesn't bother"...so yes, you're actually arguing that Valve is a shit company that doesn't do anything to stop it, glad we agree. Yes it costs money to regulate your market, that's the cost of doing business, they're making plenty of cash and would not be out doing this. Blizz actually SAVES money by doing this because they hire customer service reps to handle the issues with stolen accounts and whatnot anyway, we've pretty clearly seen in the past that valve does not: Blizzard saves money doing it, it would cost valve money to do it because they actively don't spend the money trying to help their customer base in the first place. Pretty dope company, you've convinced me.
 

pompidu

Member
To be honest, this is probably a good argument for why Valve doesn't bother. Blizzard spends (or used to spend) a ton of resources trying to clamp down on black market dealings, yet WoW has still had, for over a decade, a massive industry built entirely around stealing accounts, hacking, phishing, and filling game worlds with bots. Like CS:GO, there were and are entire companies and websites that do nothing but provide a method of converting gold to cash.

The WoW Token was explicitly an acknowledgement that conventional methods of combating black markets were completely ineffective, and that the only way to put a dent in them are through competing with them directly (which Valve already does).

Easily stopped in one swoop, turn off trading. If you create a market, you must in turn protect it. Valve makes a fuck load of $ off items for the pure reason they can be traded or sold.
 

Regginator

Member
I believe the thread title should also mention that Valve is the one being sued. CSGO Lotto and the two little fish have merely been "added to one of two complaints filed". Good news, I hope they rip Valve a new ass hole and the whole skin market nonsense gets crashed upon itself.
 
I...what? Way to completely misunderstand. Blizz does this BECAUSE of the murky legal waters (in game gambling they shut down, which is VERY tame and benign compared to the CS:GO stuff, literally people playing with monopoly money) and to protect customers, saying they 'waste' resources is crazy, they're 'wasting' resources protecting customers and handling customer service complaints. Meanwhile Valve basically doesn't have customer service AND doesn't stop the sites, it's the worst of both sides of the deal. The wow token isn't an admission that you can't stop the black market, it's moreso simply win/win from a business perspective from them and tapping an aspect of the internet that actively harms their customer base. They don't suddenly cease policing the black market as best they can because of it.

It's baffling to me how much you go out of your way to try and twist logic to favor valve.

The Token was explicitly designed to get people spending money on black markets to give money to Blizzard instead.

And no, it isn't for legal purposes. They don't even ban the most obvious bots anymore. A huge part of WoW staff existed only as support to field phone calls and emails. MOST of these in turn are due to people being stupid and giving out passwords, downloading keyloggers and getting their accounts stolen. The black market hurt their profit lines. Nowadays, if you report a scammer or a website selling gold for real money? They give zero fucks.

And LOL at Blizzard cracking down on in-game gambling. They've never cared about it unless you're spamming chat about it.
 

LordRaptor

Member
Blizz does this BECAUSE of the murky legal waters (in game gambling they shut down, which is VERY tame and benign compared to the CS:GO stuff, literally people playing with monopoly money)

Blizzard don't do anything about gambling in WoW, it's not even against their TOS.
They don't like people spamming public channels advertising it, but that's literally the extent of their actions.

Easily stopped in one swoop, turn off trading.

Brilliant solution that won't stop shit and will piss off the millions of people who legitimately use the trade system.

e:
I believe the thread title should also mention that Valve is the one being sued. CSGO Lotto and the two little fish have merely been "added to one of two complaints filed".

Yes, this topic is about a lawsuit against valve for "targeting children with illegal gambling" which is to my mind entirely frivolous;
1) Even actual real world illegal gambling doesn't have any legal precedence for returning lost gambled money
2) it is a huge logic jump to go from
Valve have no stance / are neutral towards gambling
Valve condone gambling
Valve promote gambling
Valve promote illegal gambling
Valve promote illegal gambling and target minors
 

Raynes

Member
When people are sued for an illegitimate business, what happens to all the money they made from it? Do they get to keep their fradulant money? It would be nice if their income from this gets taken away, it would make most sense.
 

dpunk3

Member
If they lose we don't need legislation, the legal precedence should send a clear message to both these shitty gambling websites and Valve that it's open season.
 
If they lose we don't need legislation, the legal precedence should send a clear message to both these shitty gambling websites and Valve that it's open season.
Legislation is still direly needed, setting precedents will help but this shit needs to be cracked up on for good.
 
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