All roads lead back to the only people who can stop the problem they created.This report was assisted by:Nick Devor at Barron's - https://www.barrons.com/art...
He did say govt should be involved, and I’d agree generally. Gambling and gambling lite like lootboxes need regulation to die, but Valve is also a massive company running the biggest game storefront in the world, and they don’t need the money from the lootboxes and cuts from selling and trading. They aren’t in direct competition with most game creators, they compete with other storefronts, and it isn’t even close. They could fix this relatively easily and it would barely make a dent in their finances.
They could also leave the lootboxes and gambling up, and just implement an age verification system, one that locks you out of trading until the account is verified 18 or older, and add other tools like locking yourself out of trading or opening boxes similar to how casinos allow you to blacklist yourself for your own good.
In terms of a relatively quick, relatively painless, realistic fix, with a decent timeframe, valve makes the most sense, and they can fix this extremely easily compared to getting every government in the world to agree, implement, and enforce regulations. Ideally, yes, governments fix it. Realistically, kids are getting addicted to gambling and having their lives ruined right now, and valve has the power to stop it. I think it’s fair to ask, and expect a real answer, yes or no.
I think the issue of lootboxes and shady third-party casinos, while intertwined, are very separate, almost parallel issues. Coffee reads them as largely being the same issue which leads to a lot of the messiness of this video, and makes the video harder to discuss.
I think in terms of dealing with the 3rd party casinos, Valve is pretty powerless, and feel Coffee’s arguments for their intervention are very hand-wavey. That is the biggest issue I have with this video. As I outlined in a comment on his last video, most options they have punish victums and unrelated users more than casinos. Even if Valve goes all-out and disables all item trading and marketing, casinos still walk away with all their profits and are incentived to try and scam their users out of every penny before that happens, while normal users and traders are left without ways to get skins they want (at least outside of gambling through Valve) or are left with a bunch of dead inventory they don’t want. If anything, this kinda highlights what I meant by Valve being less agressive on the gambling, as they provide many fairly priced ways to be involved with the skin ecosystem without ever having to open a lootbox or a casino.
In terms of Valve regulating lootboxes on their platform, and specifically CS2 crates, I think theres more merit to the argument, but I still think it’s not realistic to ask Valve to regulate themselves and assume they’ll be able to compete both on the game and platform level, with those who are not. Valve’s momentum does play a bit part in their success, but so too does their featureset to players and friendliness to developers and publishes.
On the game front, if Valve removes lootboxes or adds barries to entry, they will still be forced to directly complete with games that don’t. Even assuming players don’t want lootboxes (although the unfortunate reality of the market is that many do) Valve is still put in a position where their budget is determined by what they can morally earn while their competition uses whatever manipulate, deceptive, or immoral methods they want.
On the platform side, it might be easier, but it could also put them in an even worse position as they rely on other developers and publishes, including the shady ones like EA and Unisoft, to fill their storefront. Part of the reason Steam has the userbase where other platforms don’t is because they have the most complete selection of games. On the other hand, if Steam starts to threaten Publisher’s incomes such as by requiring age verification on gambling, this will likely be far more in incentive to leave than their 30% split ever was. At least the 30% cost covered infrastructure, payment processing and first level support whereas if companies are blocked from their gambling addict audience, they likely will lose a significant part of their revenue outright.
compared to getting every government in the world to agree, implement, and enforce regulations
You don’t necessary need every country nor do you need particularly extreme measures to have an impact. Same as with privacy regulations and a lot of other forms of monitization on the internet, you just need a few bigger blocks to massively increase the costs and risk. If, for example, the EU started requiring age verification to access lootboxes, that would immediately add a significant new cost to adding lootboxes. Notably, for exactly the sorts of live-service games these lootboxes are most common in, data collection and anti-cheat also tend to be key elements of the game and it’s design and monitization - both of which conflict with the ability to ignore user location or age. The developer can’t claim they thought the user was in the US, if the anti-cheat reported that they were using a VPN and were actually logging in from the EU, for example. Obviously there are workarounds for this sort of thing, but again more costs and compexity that eat into profits, and more risk for making mistakes.
But valve is not powerless. They provide the API to easily trade outside of the steam marketplace. And saying Valve is morally earning money while the competition does not, its not a fair thing to say.
Valve started the whole slotmachine lootbox bullshit in the first place. They know very well what they’re doing.
Valve could give gamblers 2 weeks to take their skins off the sites and then block API access to these casinos or just shut down the API completely. Saying victims will be hurt so lets have casinos continue to create victims, is a strange argument to make.
And saying Valve is morally earning money while the competition does not, its not a fair thing to say.
This was arguing in the hypothetical that Valve stopped acting immoraly. I’m not trying to argue that Valve is in the right here. I’m arguing that they are a player in this game as well, along with their competition, and so shouldn’t be singled out as the ones required to change or to enforce new laws.
Valve could give gamblers 2 weeks to take their skins off the sites and then block API access to these casinos
This just gives the casinos warning so they can pull the rug more cleanly, and have more time to spin up a replacement casino.
or just shut down the API completely.
Then this punishes every other user for the actions of a tiny, tiny minority. Even ignoring users using the open market for legitimate and fair buisness, said market provides a way to obtain skins without relying on Valve to set prices or distribute skins. As such, unless Valve also removes their own lootboxes at the same time, it means that users can only interact with skins through gambling.
The one solution that would address all of this at once and wouldn’t substantially affect unrelated users would be governments implementing laws against unregulated gambling. Unlike Valve, they can address the whole industry at once, and aren’t punished for trying to enforce said laws.
Valve is still put in a position where their budget is determined by what they can morally earn while their competition uses whatever manipulate, deceptive, or immoral methods they want.
What competition has such a rich gambling scene though. No other game I am aware of (Maybe TF2 but, still valve)
if Steam starts to threaten Publisher’s incomes such as by requiring age verification on gambling, this will likely be far more in incentive to leave than their 30% split ever was
Age verification on the marketplace transactions is the more likely scenario, and again, no other game I know of has as much of a gambling community so I don’t really get why other publishers would leave if it doesn’t effect them.
Ultimately, I think you’re missing the point of coffeezillas video, which is that a lot of people who were in the skin gambling community are actively or, started in it, as a minor. You are here trying to find all of these excuses for valve not to be held accountable for facilitating gambling to a minor.
What competition has such a rich gambling scene though. No other game I am aware of (Maybe TF2 but, still valve)
Gacha games have been taking over the world ever since Genshin Impact and those are pure gambling. Going even further back, Ultimate Team on FIFA (EA FC now) is probably the worst true “selling gambling to kids” product I can remember.
Most of them don’t have a gambling scene, because most gacha games don’t allow you to trade the things you get from the gacha. Valve does and that’s what facilitates the online casinos that is based on CS2 skins.
What competition has such a rich gambling scene though. No other game I am aware of (Maybe TF2 but, still valve)
Most mobile games? Apex? Overwatch? Keep in mind, a lot of the CS gambling happens off-platform and Valve doesn’t collect any direct revenue from it, which is why Valve can’t directly intervene in a lot of it.
Age verification on the marketplace transactions is the more likely scenario, and again, no other game I know of has as much of a gambling community so I don’t really get why other publishers would leave if it doesn’t effect them.
This argument is specifically in the context of lootboxes as gambling on Steam. Think how much people will spend in lootboxes on your average free to play game. If they aren’t allowed to do this on Steam, games like Apex, CoD, PUBG, War Thunder, ect. won’t stay on Steam.
Ultimately, I think you’re missing the point of coffeezillas video, which is that a lot of people who were in the skin gambling community are actively or, started in it, as a minor. You are here trying to find all of these excuses for valve not to be held accountable for facilitating gambling to a minor.
This is exactly my point about Coffee’s argument being muddled in this video, making it hard to discuss. There are three parallel problem here that the video combines into one: third-party casinos, CS lootboxes, and lootboxes in the industry in general.
In terms of Valve shutting down illegal/third party casinos, they don’t have the means to impact this without also shutting down the entire market for everyone, innocent or guilty. Why should I, as someone who has never even bought a lootbox, nonetheless run an illegal casino be punished for their actions. Even then, casino owners aren’t held responsible, they’re just stopped. On the other hand, with government intervention, no one is caught in the crossfire and casino owners could actually be held responsible for their actions with fines or worse. Why wouldn’t this be the better option?
In terms of Valve selling lootboxes themselves, yes its immoral, but as Coffee said about the casinos, they’re competiting with other products doing the same and you can’t reasonably expect one side to just role over and accept their loss. Instead, you need to change the system so neither side can use tactics like this. Instead of asking Valve to regulate themselves, and expecting their competition to do the same, you change the law (or just actually enforce it) to ensure that noone gets away with it.
He did say govt should be involved, and I’d agree generally. Gambling and gambling lite like lootboxes need regulation to die, but Valve is also a massive company running the biggest game storefront in the world, and they don’t need the money from the lootboxes and cuts from selling and trading. They aren’t in direct competition with most game creators, they compete with other storefronts, and it isn’t even close. They could fix this relatively easily and it would barely make a dent in their finances.
They could also leave the lootboxes and gambling up, and just implement an age verification system, one that locks you out of trading until the account is verified 18 or older, and add other tools like locking yourself out of trading or opening boxes similar to how casinos allow you to blacklist yourself for your own good.
In terms of a relatively quick, relatively painless, realistic fix, with a decent timeframe, valve makes the most sense, and they can fix this extremely easily compared to getting every government in the world to agree, implement, and enforce regulations. Ideally, yes, governments fix it. Realistically, kids are getting addicted to gambling and having their lives ruined right now, and valve has the power to stop it. I think it’s fair to ask, and expect a real answer, yes or no.
I think the issue of lootboxes and shady third-party casinos, while intertwined, are very separate, almost parallel issues. Coffee reads them as largely being the same issue which leads to a lot of the messiness of this video, and makes the video harder to discuss.
I think in terms of dealing with the 3rd party casinos, Valve is pretty powerless, and feel Coffee’s arguments for their intervention are very hand-wavey. That is the biggest issue I have with this video. As I outlined in a comment on his last video, most options they have punish victums and unrelated users more than casinos. Even if Valve goes all-out and disables all item trading and marketing, casinos still walk away with all their profits and are incentived to try and scam their users out of every penny before that happens, while normal users and traders are left without ways to get skins they want (at least outside of gambling through Valve) or are left with a bunch of dead inventory they don’t want. If anything, this kinda highlights what I meant by Valve being less agressive on the gambling, as they provide many fairly priced ways to be involved with the skin ecosystem without ever having to open a lootbox or a casino.
In terms of Valve regulating lootboxes on their platform, and specifically CS2 crates, I think theres more merit to the argument, but I still think it’s not realistic to ask Valve to regulate themselves and assume they’ll be able to compete both on the game and platform level, with those who are not. Valve’s momentum does play a bit part in their success, but so too does their featureset to players and friendliness to developers and publishes.
On the game front, if Valve removes lootboxes or adds barries to entry, they will still be forced to directly complete with games that don’t. Even assuming players don’t want lootboxes (although the unfortunate reality of the market is that many do) Valve is still put in a position where their budget is determined by what they can morally earn while their competition uses whatever manipulate, deceptive, or immoral methods they want.
On the platform side, it might be easier, but it could also put them in an even worse position as they rely on other developers and publishes, including the shady ones like EA and Unisoft, to fill their storefront. Part of the reason Steam has the userbase where other platforms don’t is because they have the most complete selection of games. On the other hand, if Steam starts to threaten Publisher’s incomes such as by requiring age verification on gambling, this will likely be far more in incentive to leave than their 30% split ever was. At least the 30% cost covered infrastructure, payment processing and first level support whereas if companies are blocked from their gambling addict audience, they likely will lose a significant part of their revenue outright.
You don’t necessary need every country nor do you need particularly extreme measures to have an impact. Same as with privacy regulations and a lot of other forms of monitization on the internet, you just need a few bigger blocks to massively increase the costs and risk. If, for example, the EU started requiring age verification to access lootboxes, that would immediately add a significant new cost to adding lootboxes. Notably, for exactly the sorts of live-service games these lootboxes are most common in, data collection and anti-cheat also tend to be key elements of the game and it’s design and monitization - both of which conflict with the ability to ignore user location or age. The developer can’t claim they thought the user was in the US, if the anti-cheat reported that they were using a VPN and were actually logging in from the EU, for example. Obviously there are workarounds for this sort of thing, but again more costs and compexity that eat into profits, and more risk for making mistakes.
But valve is not powerless. They provide the API to easily trade outside of the steam marketplace. And saying Valve is morally earning money while the competition does not, its not a fair thing to say. Valve started the whole slotmachine lootbox bullshit in the first place. They know very well what they’re doing. Valve could give gamblers 2 weeks to take their skins off the sites and then block API access to these casinos or just shut down the API completely. Saying victims will be hurt so lets have casinos continue to create victims, is a strange argument to make.
This was arguing in the hypothetical that Valve stopped acting immoraly. I’m not trying to argue that Valve is in the right here. I’m arguing that they are a player in this game as well, along with their competition, and so shouldn’t be singled out as the ones required to change or to enforce new laws.
This just gives the casinos warning so they can pull the rug more cleanly, and have more time to spin up a replacement casino.
Then this punishes every other user for the actions of a tiny, tiny minority. Even ignoring users using the open market for legitimate and fair buisness, said market provides a way to obtain skins without relying on Valve to set prices or distribute skins. As such, unless Valve also removes their own lootboxes at the same time, it means that users can only interact with skins through gambling.
The one solution that would address all of this at once and wouldn’t substantially affect unrelated users would be governments implementing laws against unregulated gambling. Unlike Valve, they can address the whole industry at once, and aren’t punished for trying to enforce said laws.
What competition has such a rich gambling scene though. No other game I am aware of (Maybe TF2 but, still valve)
Age verification on the marketplace transactions is the more likely scenario, and again, no other game I know of has as much of a gambling community so I don’t really get why other publishers would leave if it doesn’t effect them.
Ultimately, I think you’re missing the point of coffeezillas video, which is that a lot of people who were in the skin gambling community are actively or, started in it, as a minor. You are here trying to find all of these excuses for valve not to be held accountable for facilitating gambling to a minor.
Gacha games have been taking over the world ever since Genshin Impact and those are pure gambling. Going even further back, Ultimate Team on FIFA (EA FC now) is probably the worst true “selling gambling to kids” product I can remember.
Most of them don’t have a gambling scene, because most gacha games don’t allow you to trade the things you get from the gacha. Valve does and that’s what facilitates the online casinos that is based on CS2 skins.
Most mobile games? Apex? Overwatch? Keep in mind, a lot of the CS gambling happens off-platform and Valve doesn’t collect any direct revenue from it, which is why Valve can’t directly intervene in a lot of it.
This argument is specifically in the context of lootboxes as gambling on Steam. Think how much people will spend in lootboxes on your average free to play game. If they aren’t allowed to do this on Steam, games like Apex, CoD, PUBG, War Thunder, ect. won’t stay on Steam.
This is exactly my point about Coffee’s argument being muddled in this video, making it hard to discuss. There are three parallel problem here that the video combines into one: third-party casinos, CS lootboxes, and lootboxes in the industry in general.
In terms of Valve shutting down illegal/third party casinos, they don’t have the means to impact this without also shutting down the entire market for everyone, innocent or guilty. Why should I, as someone who has never even bought a lootbox, nonetheless run an illegal casino be punished for their actions. Even then, casino owners aren’t held responsible, they’re just stopped. On the other hand, with government intervention, no one is caught in the crossfire and casino owners could actually be held responsible for their actions with fines or worse. Why wouldn’t this be the better option?
In terms of Valve selling lootboxes themselves, yes its immoral, but as Coffee said about the casinos, they’re competiting with other products doing the same and you can’t reasonably expect one side to just role over and accept their loss. Instead, you need to change the system so neither side can use tactics like this. Instead of asking Valve to regulate themselves, and expecting their competition to do the same, you change the law (or just actually enforce it) to ensure that noone gets away with it.