ArcaneBet is a secure and fully licensed sportsbook with focus on Esports and also offer sports betting on regular sports and casino.
What makes them unique is that they accept Skins, Bitcoins and Real Money.
The site differ from traditional skin betting sites in the way that you do not bet with skins. You only deposit with skins. The skins are then exchanged to Real Money.
- Both CSGO Skins and Dota 2 Skins are accepted at ArcaneBet
- You have the option to deposit using skins
- The value of your skins will be credited to your account in Real Money
- Real Money is used to bet with
- Minimum bet as low as €1
- When you withdraw funds from your account you can only withdraw Real Money and not Skins
You deposit skins using SkinPay or Skinwallet
- Explanation & History
- Integrity Problems
- Skin Betting 2017+
What is Skin Betting?
Skins is a cosmetic in-game feature that have no influence on gameplay. Popularized by Valve, the developers behind Counter-Strike:Global Offensive and Dota 2. In CS:GO skins are simply a cosmetic for the weapons that are used in-game. See picture below for example of a typical skin that is used for betting.
These obtainable skins can be gained by playing CS:GO matches or completing missions during CS:GO Operations. A player can get a Skin drop or a Case drop. The most common way to get rare drops is by opening cases. To open a case the player need a key that he can get in the Steam Shop or on the Steam Market. Opening a case is a lottery where the player will get a skin. Skins have different rarity and depending if its a common or a extremely rare skin the value of the item varies. Opening a case is exactly like a lottery where the key and case is the lottery ticket. Below you can see a video of case openings where the guys are extremely lucky and get 2 knives which is extremely unlikely. Knives have a 0.44% drop rate according to this study. Common items have around 80% drop chance. Full table and drop chances can be found here.
Or you can obtain skins the easy way by purchasing them for real money or bitcoins. The knifes in the clip are valued at 113€ (2017) while most Common Blue items have a value of 0.03€. The prices of the knifes are driven by rarity and desirability from the CS:GO fanbase. In some cases what the betting market/skin betting sites value the skins at (a form of market manipulation) in order to establish a steady price for skins that are most commonly used for betting such as specific 5€, 10€, 20€, 50€ and 100€ skins.
Valve added skins in 2013 with the intention to improve the community by having players collecting and exchange skins with each other over the Steam marketplace. Each time a trade takes place on the marketplace Valve takes a small cut while there are monetary restrictions for the players. Any credit a player receives through the Steam marketplace can only be used in the Steam platform to buy games etc.
Websites found a way to bypass the Steam marketplace restrictions by setting up Steam accounts where they would trade directly with players and the player would receive real money for their skin on the 3rd party website. These websites made use of bots that would trade with players and automated the whole process. It did not take long until some of the websites added the possibility to gamble on the outcome of professional matches – much like a regular sportsbook, only unregulated, but more on that topic later!
During these years it was practically the wild west in skin betting and many argued that it needed to be regulated.
There was issues with fraudulent/rigged websites most commonly roulette-like websites.
Then the whole issue with underage gambling. Since anyone is allowed to have a Steam account and the sites that offer skin betting and skin gambling casino had little to no KYC (Know Your Customer) in place. So underage gambling became a huge problem.
Most sites did not declare who owned them and were often setup in ways where it would be difficult to find out who was behind the websites. This lead to problems with transparency. There are many famous cases involving “celebrities” who promoted websites that they were either associated with financially or directly owned the sites. This obviously created conflicts of interest and the practice was identified to be in conflict consumer protection laws. Most of the scandals that occurred during the wild west era can be accredited to casino sites and not skin sportsbetting sites.
Valve have been under heavy fire as well since they are in the center of everything facilitating the trades through the Steam Platform. While they do not directly profit from the private trades between Steam account they do profit in-directly from the hype that is built around CSGO and the synergy effects it has on their business.
Gambling commission have applied pressure on Valve through the years “immediately stop allowing the transfers of skins for gambling activities throug hthe company Steam platform.” Time and time again Valve have replied that they are not involved in any gambling sites and are doing nothing wrong. After all Valve’s Steam platform is used by millions of people making perfectly legal transactions and they are powerless to 3rd parties violating laws by using their facilities.
Esports in general have a lot of integrity problems that are being worked on actively. Mainly for skin betting the integrity issues surrounds match fixing. Sometimes you would have a syndicate paying players to throw matches and in some cases you would have players personally betting on the opposite team and then throw their match.
The latter of the two is getting less common thanks to the skin betting industry getting better regulated, used to be that users could place bets more or less anonymously making it hard to detect the involvement of match fixing from pro players.
The former is more common today where you would have a syndicate with no ties to the players paying them off to get the desired results and thus fix matches that way.
Most common instances of match fixing today is smaller tournaments where the prize pools are small and the players participating have low salaries and/or are semi professionals. These tournaments are available for betting and in some cases you can bet $500-1000+ on the outcome of one match in a tournament where the team would have to win 7-8 matches including the final just to win $1500 for the first prize.
Things are getting better however as there are more and more companies and organisation working together and creating strong partnerships to eradicate match fixing and discover strange patterns in price/market changes that could point to illegal match fixing activities. There have also been a few cases were players have received long bans from competitive play after getting busted for match fixing. In the video below TheWarOwl goes through what happend.
Skin Betting 2017+
In 2016 there were major crack downs on illegal skin gambling websites as Valve went in and put some pressure on the operators of these sites after themselves receiving a lot of pressure through increased media coverage on illegal and underage gambling through lawsuits and scandals.
Industry experts estimated that skin betting would see smaller numbers and cease to grow, while there was some declines in numbers skin betting continues to grow and websites have become more responsible acting according to existing gambling laws and regulations.
While things got tougher during 2016 and 2017 (for the better) the market is still expected to see a handle of $12.9 Billion by 2020 compared to the $20 Billion estimates made before the crackdown on skin gambling sector. The future of skin betting is largely dependent on Valve and their control of the Steam API and its platform that enable use from third-party websites.
There are still dodgy operators out there but as with everything in life if you use your head before acting you will be better off. Do a little bit of research before you sign up and deposit. Use your head or stick to the Skin Betting websites we have listed at eGamingBet.com