Valve Skin Economy Fuels Offshore Casinos and Pro Esports Teams

The Dark Side of Counter-Strike 2 — Coffeezilla

Coffeezilla

Unregulated skin trading enables offshore gambling platforms to hook underage players and bankroll professional Counter-Strike teams, leaving market reform impossible without direct intervention from Valve.

AI-assisted summary of The Dark Side of Counter-Strike 2 — original source. Check the original for full context.

Source published:

Key ideas

  • Roughly 70% of Counter-Strike gamblers began gambling underage according to a survey of over 9,000 players, driven by loot boxes that require no age verification and offshore sites operating without upfront KYC. (0:00)
  • Major skin gambling operations generate staggering revenues, with Clash's co-owner reporting around $50 million per month and combined site traffic nearly doubling that of the world's largest licensed online casino. (7:00)
  • Approximately 75% of the top 300 Counter-Strike streamers by watch time are sponsored by gambling platforms, with prominent creators like Grim and Juicy disclosing pre-tax annual earnings of roughly $5 million each. (28:31)
  • Esports teams face an structural dilemma where gambling sponsors pay 5 to 6 times more than traditional brands, making Tier 2 Counter-Strike competitively and financially unsustainable without skin casino backing. (30:56)

Detailed notes

## Background Published on YouTube by investigative journalist Coffeezilla on December 22, 2024, this video exposes the ecosystem of Counter-Strike 2 skin casinos, sponsored content creators, and competitive esports teams reliant on gambling revenue. The investigation seeks to uncover the systemic harms of unregulated betting platforms and examine how industry-wide accountability can be achieved.

## TL;DR The documentary examines the multi-billion-dollar Counter-Strike skin gambling underworld, tracing how Valve's frictionless loot boxes serve as an initial gateway into unregulated offshore casinos that deliberately skip upfront KYC checks. Coffeezilla confronts top gambling creators earning up to $5 million annually, dismantling their moral rationalizations and highlighting their role in funneling young audiences into predatory reward loops like HypeDrop. The piece reveals that approximately 75% of top CS streamers and entire tiers of competitive esports organizations rely on gambling windfalls to survive, creating a prisoner's dilemma where ethical participants are financially outcompeted. Ultimately, the investigation concludes that individual shaming achieves little without holding Valve accountable as the core gatekeeper profiting from the entire digital skin economy.

## Atmosphere & style The presentation carries the gritty, urgent cadence of a modern noir cyber-investigation, cut through with relentless cross-examinations and tense confrontation interviews. Coffeezilla balances forensic analytical breakdowns with acerbic skepticism as he dismantles the hollow deflections of multi-millionaire creators and casino operators. Watching it feels like observing a slowly unraveling house of cards, moving from chaotic montage and corporate hypocrisy toward an unavoidable, sobering indictment of systemic institutional complicity.

## Bulletin - [00:00](https://www.youtube.com/watch?v=v6jhjjVy5Ls&t=0s) Roughly 70% of Counter-Strike gamblers began gambling underage according to a survey of over 9,000 players, driven by loot boxes that require no age verification and offshore sites operating without upfront KYC. - [07:00](https://www.youtube.com/watch?v=v6jhjjVy5Ls&t=420s) Major skin gambling operations generate staggering revenues, with Clash's co-owner reporting around $50 million per month and combined site traffic nearly doubling that of the world's largest licensed online casino. - [28:31](https://www.youtube.com/watch?v=v6jhjjVy5Ls&t=1711s) Approximately 75% of the top 300 Counter-Strike streamers by watch time are sponsored by gambling platforms, with prominent creators like Grim and Juicy disclosing pre-tax annual earnings of roughly $5 million each. - [30:56](https://www.youtube.com/watch?v=v6jhjjVy5Ls&t=1856s) Esports teams face an structural dilemma where gambling sponsors pay 5 to 6 times more than traditional brands, making Tier 2 Counter-Strike competitively and financially unsustainable without skin casino backing.

## Key takeaways - [00:00](https://www.youtube.com/watch?v=v6jhjjVy5Ls&t=0s) Counter-Strike weapon skins serve as frictionless virtual poker chips on unregulated third-party casinos, enabling massive secondary gambling markets without traditional banking oversight. - [02:28](https://www.youtube.com/watch?v=v6jhjjVy5Ls&t=148s) Surveys indicate an overwhelming majority of CS gamblers start as minors, drawn in around ages 12 to 14 through in-game loot box mechanics. - [02:28](https://www.youtube.com/watch?v=v6jhjjVy5Ls&t=148s) Offshore platforms engage in a competitive race to the bottom, actively advertising a lack of Know Your Customer (KYC) identity checks to capture market share from more restrictive competitors. - [07:00](https://www.youtube.com/watch?v=v6jhjjVy5Ls&t=420s) Skin casinos rival mainstream gambling giants in volume and revenue, with individual platforms reportedly grossing up to $50 million per month. - [10:19](https://www.youtube.com/watch?v=v6jhjjVy5Ls&t=619s) Casino self-regulation fails in practice because operators like CSGOEmpire's Monarch concede that unilaterally requiring upfront KYC checks would destroy their business by driving users to rivals. - [12:30](https://www.youtube.com/watch?v=v6jhjjVy5Ls&t=750s) Influencer sponsorships and streaming algorithms serve as the primary entry point funneling impressionable video game audiences into offshore skin casinos. - [14:14](https://www.youtube.com/watch?v=v6jhjjVy5Ls&t=854s) Sponsored creators use personal enjoyment and fast-food analogies to rationalize promoting harmful platforms, even while acknowledging close friends and viewers face financial ruin. - [17:30](https://www.youtube.com/watch?v=v6jhjjVy5Ls&t=1050s) Platforms rely heavily on an extreme whale model, with the Clash.gg CEO publicly confirming that less than 1% of user accounts generate 80% of total site revenue. - [20:29](https://www.youtube.com/watch?v=v6jhjjVy5Ls&t=1229s) Ancient Gaming offshoot HypeDrop used daily reward cases to claim users could not lose money, evading Danish regulators before abruptly shutting down and wiping user balances. - [26:12](https://www.youtube.com/watch?v=v6jhjjVy5Ls&t=1572s) Top gambling creators earn multi-million dollar annual incomes, with tax filings and interviews confirming creators like Grim and Juicy pull in approximately $5 million per year. - [28:31](https://www.youtube.com/watch?v=v6jhjjVy5Ls&t=1711s) Around 75% of the top 300 Counter-Strike streamers are funded by gambling platforms, creating immense pressure on ethical creators who forfeit life-changing payouts. - [30:56](https://www.youtube.com/watch?v=v6jhjjVy5Ls&t=1856s) Tier 2 and competitive Counter-Strike rely heavily on betting money, as gambling brands provide five to six times more capital than traditional sponsors. - [33:45](https://www.youtube.com/watch?v=v6jhjjVy5Ls&t=2025s) Taking gambling money operates like performance-enhancing drugs in esports, forcing organizations to accept controversial deals or risk falling behind better-funded competitors. - [36:48](https://www.youtube.com/watch?v=v6jhjjVy5Ls&t=2208s) True structural reform requires holding Valve accountable, as the developer holds complete administrative authority over Steam and skins but lacks financial incentive to dismantle the ecosystem.

## Detailed walkthrough ### [00:00](https://www.youtube.com/watch?v=v6jhjjVy5Ls&t=0s) The Underworld of Counter-Strike Gambling

The investigation opens with a chaotic montage of the escalating conflicts within the Counter-Strike gambling scene: operators raking in millions of euros, vigilante threats of street-level justice, aggressive flyer campaigns blanketing entire cities including high schools and shopping malls with strict orders to trespass past security guards, and staged 18-person protests assembled right outside personal doorways. Coffeezilla highlights that beneath these public turf wars between rival platforms lies a fundamentally corrupt ecosystem where most sites operate as outright scams. Following a prior video where Coffeezilla refused an attempted bribe and exposed the perpetrators, this investigation seeks to unpack the entire Counter-Strike gambling apparatus, the influencers pocketing millions annually to promote it, and who is truly victimized.

```mermaid flowchart TD accTitle: The Counter-Strike Skin Gambling Loop accDescr: Diagram illustrating how players acquire skins via Valve loot boxes and gamble them on unregulated offshore third-party casinos.

subgraph ValveEcosystem["Valve / Steam Ecosystem"] Game["Counter-Strike 2 Gameplay"] LootBox["Open Loot Box ($2.50)"] Skins["Cosmetic Weapon Skins\n(Worth Pennies to $10,000s)"] Game -->|"No ID required"| LootBox LootBox -->|"RNG slot reel"| Skins end

subgraph OffshoreCasinos["Offshore Third-Party Casinos"] CasinoDeposit["Deposit Skins as 'Poker Chips'"] GamblingGames["Slots, Roulette, Case Battles"] CashOut["Instant Payout / Skin Cash Out"] Skins -->|"Used as virtual currency"| CasinoDeposit CasinoDeposit --> GamblingGames GamblingGames -->|"No initial KYC"| CashOut end ```

Counter-Strike functions as a first-person shooter featuring cosmetic weapon finishes known as "skins." Players obtain these skins through in-game loot boxes that cost $2.50 to unlock via an animated reel resembling a slot machine. A massive secondary economy has developed around these digital items, with individual skins trading anywhere from a few cents to tens of thousands of dollars based on rarity. Third-party gambling platforms capitalize on this liquidity by accepting skins directly in place of cash, effectively treating them like casino poker chips to fuel games of roulette, digital slots, and case battles. When Coffeezilla began investigating why gamblers did not simply utilize traditional online casinos, his interviews uncovered a startling through-line: an overwhelming portion of players started gambling while still children.

- Interviewees consistently reported their initiation into Counter-Strike gambling at ages 12, 13, and 14, often centered right around their 13th birthdays. - A broad survey conducted by Counter-Strike YouTuber Jeff of over 9,000 players discovered that roughly 70% of Counter-Strike gamblers began gambling underage.

[02:28](https://www.youtube.com/watch?v=v6jhjjVy5Ls&t=148s) Regulatory Black Holes and the Race to the Bottom

Counter-Strike serves as an frictionless gateway to underage gambling because Valve requires no identity verification to spend $2.50 on digital keys and skins. Once minors possess skins, third-party offshore sites rarely mandate Know Your Customer (KYC) identity verification upon entry. If these platforms ever verify customer identity, they typically do so only after a player has already wagered and lost thousands of dollars—a practice Coffeezilla compares to a liquor store asking for proof of age only after a patron has consumed ten bottles of alcohol. While brick-and-mortar casinos strictly guard their doors under threat of license revocation, CS2 gambling sites operate out of loose jurisdictions like Curaçao, Malta, and Cyprus, relying on creative legal loopholes to insist their services do not constitute gambling.

```mermaid flowchart LR accTitle: The Competitive Race to the Bottom accDescr: Flowchart showing how unregulated market dynamics penalize consumer protections and reward sites with zero verification.

subgraph CompliantOperator["Higher Friction Platform (e.g. CSGOEmpire)"] Empire["Enforces IP / US Geo-blocks"] Friction["Requires VPN / Extra Setup"] LostUsers["Loses Casual & Underage Users"] Empire --> Friction --> LostUsers end

subgraph UnregulatedOperator["Zero Friction Platform (e.g. CSGORoll / Clash)"] Roll["Zero Geo-blocking or ID Checks"] EasyAccess["Instant Browser Deposit"] HigherProfits["Captures Market Share & Addicts"] Roll --> EasyAccess --> HigherProfits end ```

This dynamic creates a perverse race to the bottom: any operator attempting to introduce consumer protections actively drives customers to less scrupulous competitors. When Valve issued cease-and-desist letters and the FTC intervened against influencers following the 2016 CSGOLotto scandal, operators escaped major consequences by reclassifying their offerings under sweepstakes loopholes, allowing identical operations to return under new branding. A user interviewed by Coffeezilla explained how simple geoblocking differences shape player traffic: while CSGOEmpire required five minutes to configure a VPN to bypass regional blocks from the United States, CSGORoll permitted direct, unrestricted access straight from an American browser without friction.

> “Clash just paid out its biggest one-time Cash Out instantly with no verification couldn't be more happy with the product and reputation we are building” > — Clash CEO (via Twitter/X)

- Traditional casinos strictly enforce entry checks to protect their state gambling licenses, whereas offshore esports platforms exploit lack of oversight in jurisdictions like Curaçao, Malta, and Cyprus. - CSGOLotto evaded severe regulatory blowback in 2016 by exploiting loopholes and claiming to run promotional sweepstakes rather than a casino. - Platform owners openly advertise their lack of KYC checks as a feature to attract underage players, money launderers, and users wanting to bypass ID friction.

[07:00](https://www.youtube.com/watch?v=v6jhjjVy5Ls&t=420s) Massive Revenues and the Gateway Drug Pipeline

The financial scale of Counter-Strike skin casinos rivalries the largest legal gambling corporations in the world. Industry insiders and operators confirm staggering revenue metrics: one site co-owner reported that Clash's partner Boris (known by handles such as "dogs playing poker" and "friendly chemist") stated the operation grossed approximately $50 million per month. Popular Counter-Strike gambling creators corroborate that top-tier platforms routinely make tens of millions of dollars each month. A comparative traffic analysis conducted by YouTuber Jeff revealed that aggregate visitor traffic across major CSGO gambling domains was nearly double that of the world's largest online casino, a licensed giant that reported $2.6 billion in gross revenue in 2022. Because minimal friction maximizes profits, operators have zero financial incentive to implement voluntary age verification.

```mermaid flowchart TD accTitle: The Progression of Gambling Escalation accDescr: Diagram tracing player escalation from innocuous video game microtransactions to severe offshore gambling addiction.

Stage1["In-Game Microtransactions\n(Mom's credit card, opening $2.50 Steam cases)"] Stage2["Influencer Exposure\n(Watching streamers open cases on third-party sites)"] Stage3["Third-Party Unregulated Platforms\n(Roulette, high-stakes case battles, no KYC)"] Stage4["Compulsive Gambling Addiction\n(Tens of millions monthly flowing offshore)"]

Stage1 -->|"Normalized gambling mechanics"| Stage2 Stage2 -->|"Escalation of risk"| Stage3 Stage3 --> Stage4 ```

The loudest crusader against these industry practices ironically happens to be Monarch, the controversial owner of rival platform CSGOEmpire. Despite his hostile tactics, Coffeezilla acknowledges that Monarch’s public diagnosis of the problem cuts straight to the root of the psychological trap. Monarch explains how video game microtransactions function as a direct feeder system into destructive gambling addictions, drawing on his personal experience as an adolescent who transitioned from in-game stakes to offshore casinos.

> “I think that the the full case case system on on Steam is pretty horrible the way how there is no kyc there's uh it's such a powerful tool for getting children and even adults I think even adults they have a gambling problem it's not only like a it's not a age exclusive thing it's just a machine that makes people gamble.” > — Monarch

> “This is where it's like it's like switching from from weed straight to I don't know amphetamine or something and they just go deeper and deeper into this.” > — Monarch

- Platform revenues reach eight-figure territories, with Clash reportedly producing around $50 million a month according to statements attributed to co-owner Boris. - Combined web traffic to Counter-Strike gambling sites almost doubled the traffic of the largest traditional online casino, which posted $2.6 billion in 2022 gross revenue. - Monarch cites RuneScape's Duel Arena as his personal childhood gateway drug at age 13, warning that Steam's case opening mechanics seamlessly funnel kids using their parents' credit cards directly into third-party case opening websites through influencer sponsorships.

[10:19](https://www.youtube.com/watch?v=v6jhjjVy5Ls&t=619s) The Limits of Self-Regulation and CSGOEmpire's KYC Hypocrisy

The rabbit hole of gambling content functions much like an inescapable trap. When an addict decides they want to stop, closing the casino tabs on a browser is simple enough. The real ambush begins the moment they open social media: YouTube, Instagram, Twitch, and TikTok immediately bombard them with tailored gambling advertisements. The algorithm continuously feeds them promotions, creating an environment akin to a recovering heroin addict walking outside only to see billboards and their favorite idols actively endorsing heroin. While Coffeezilla acknowledges that it is refreshing to hear a casino operator like Monarch speak plainly about the industry—candidly admitting that skin betting is actual gambling rather than masquerading as a harmless "sweepstakes"—Monarch’s self-appointed crusade quickly falls apart under scrutiny. Without legal regulatory standing, his vigilante tactics amount to public harassment and intimidation, achieving little.

More damning is the glaring hypocrisy within Monarch's own operation at CSGOEmpire. Despite presenting himself as the industry’s moral watchdog fighting underage betting, his platform does not require upfront identity verification. According to CSGOEmpire's own terms of service, players are only compelled to verify their identity if they attempt to withdraw more than 2,000 coins in cryptocurrency or deposit unusually high amounts. If a user opts to withdraw winnings via Counter-Strike skins, there is no limit and no mandatory identification check whatsoever. When pressed on why he refuses to mandate Know Your Customer (KYC) identity checks before letting people deposit, Monarch concedes that unilateral regulation would instantly destroy his bottom line:

> “I'm really committed to I want to make it strict or strictor like you can't jump to the deep end just like immediately on on one day that would make us go out of out of business but really my my end goal is I want to do full full clone kyc before anybody deposits I want to make it as clean as possible.”

This evasion highlights the fundamental flaw in the fantasy of casino self-regulation. Even an operator who openly warns about the gateway nature of skin betting refuses to verify his users' ages upfront, arguing that doing so before his rivals follow suit would ruin him financially.

```mermaid flowchart TD accTitle: The Limits of Casino Self-Regulation accDescr: Diagram showing how competitive market pressure prevents CSGOEmpire from enforcing upfront KYC checks.

subgraph User["User Journey"] Deposit["User Deposits Funds / Skins"] Gamble["Gambling on Platform"] WithdrawSkins["Skin Withdrawals<br/>(No ID required)"] WithdrawCrypto["Large Crypto Withdrawals<br/>(KYC verification triggered)"] end

subgraph Dilemma["The Operator's Justification"] Enforce["Mandatory Upfront KYC"] Loss["Users Flee to Competitors"] StatusQuo["Keep Loose KYC to Survive"] end

Deposit --> Gamble Gamble --> WithdrawSkins Gamble --> WithdrawCrypto Enforce -.->|"Would cause"| Loss Loss -.->|"Forces operator into"| StatusQuo StatusQuo --> Deposit ```

[12:30](https://www.youtube.com/watch?v=v6jhjjVy5Ls&t=750s) The Real Vectors: Influencers and Streamers

Since casino operators will never willingly sacrifice their profits to protect consumers, attention naturally shifts to the promoters who feed vulnerable audiences into these platforms: the influencers. When speaking to everyday Counter-Strike players about how they initially stumbled into skin gambling, the answer is almost never an obscure forum or an organic search. Instead, it traces directly back to video streaming algorithms and creator sponsorships. CS:GO players watching regular gameplay on YouTube or Twitch were constantly served sponsored case openings, affiliate codes, and high-roller gambling streams from well-known content creators such as Juicy, Syndicate, and members of FaZe Clan.

Creators and streamers have served as the foundational distribution network for skin casinos since 2016. Fast-forward eight years, and the underlying dynamic remains identical: only the names of the websites and the creators cashing the checks have shifted. Yet while society generally recognizes casinos as predatory institutions designed to siphon wealth, viewers hold influencers to a higher moral standard—an expectation that routinely ends in disappointment. To understand how creators reconcile pushing predatory platforms onto young viewers, Coffeezilla sat down to interrogate three different gambling streamers of varying audience sizes.

[14:14](https://www.youtube.com/watch?v=v6jhjjVy5Ls&t=854s) Rationalizations, Justifications, and the "Less Dirty Dirtbag"

The discussions with sponsored creators quickly reveal a web of personal rationalizations. When Coffeezilla presses the first creator on why he advertises platforms he knows are harmful, the creator immediately contradicts himself by insisting he does not believe anyone should gamble, while maintaining that his personal enjoyment excuses the behavior:

> “I I don't think people should gamble honestly on the sites it shouldn't gamble at all um but I enjoy doing it so it's what I do if that makes any sense I don't know.”

Coffeezilla counters with a smoking analogy: enjoying cigarettes in private makes sense, but taking a paycheck to market cigarettes to an impressionable audience is an entirely different matter. The creator concedes the point, admitting that there is no valid ethical defense against the comparison, but notes that while an overwhelming amount of upfront money drew him in initially, he now continues simply because he enjoys the rush.

Another creator attempts to dodge accountability by claiming he plays the role of an educator who refuses to sugarcoat the risks. He argues that he explicitly tells his audience that gambling is not a viable strategy to make quick money, insists he avoids promoting specific deposit rewards, and asks viewers to judge his content for themselves. Coffeezilla cuts through the evasion, pointing out that CSGORoll does not hand out multi-million-dollar sponsorship deals out of charity; they pay influencers specifically because their broadcasts deliver depositing players. Backed into a corner, the streamer borrows a concept popularized by fellow streaming giant Trainwreckstv:

> “I watched your train Rex video and you said the same thing you're like the less dirtier of the dirt bags so I guess I would call myself that and ultimately if you watch the video you can decide like how less dirty is he really but yeah that's my answer.”

A third creator tries to downplay his promotions by likening them to a standard commercial, arguing that watching a gambling stream is no different than seeing a McDonald's billboard and developing a sudden craving for a Big Mac. Coffeezilla immediately rejects the parallel, pointing out that fast food does not carry the ruinous potential of a severe chemical and behavioral addiction. The creator then concedes the gravity of gambling by sharing a painful story about his closest friend, who routinely vaporizes an entire biweekly paycheck within twenty-four hours of receiving it, rendering every intervention and self-exclusion tool completely useless against the compulsion.

[17:30](https://www.youtube.com/watch?v=v6jhjjVy5Ls&t=1050s) Peddling the Drug and the 80/20 Whale Model

Confronted with the stark reality of his best friend's financial ruin, the streamer is asked how he can justify peddling that exact same destructive mechanism to his viewers. His response slips into outright nihilism:

> “Can I say like I'm a drug dealer sure you could you know you're going to label certain streamers are going to be labeled as a drug dealer um in essence and that's okay I guess if you people are going to view it that way.”

The streamer admits that the dopamine hit of a massive win is undeniable—and that such wins inevitably become high-performing YouTube videos—while claiming it crushes him whenever fans message him to confess they lost everything out of boredom.

Coffeezilla points out the hollow nature of these creator apologies. Streamers routinely profess heartache over their viewers' ruined finances, yet they stubbornly refuse to walk away from the casinos funding their lavish lifestyles. The entire business model of these platforms depends on driving people into compulsive ruin. A striking confirmation of this reality came from the founder of Clash.gg:

- The founder of Clash.gg previously boasted about rejecting player identification. - In a rare public admission, the founder acknowledged that the platform is sustained almost entirely by chronic addicts, stating: *“Less than 1% of Clash accounts make up 80% of our revenue.”* - The Clash.gg CEO ironically maintains a personal Twitter bio reading *“Never gamble. The house always wins,”* despite his fortune being funded directly by player losses.

[19:40](https://www.youtube.com/watch?v=v6jhjjVy5Ls&t=1180s) Enter HypeDrop: Real-World Loot Boxes and Daily Traps

Even when skin gambling networks cross over into outright deception, creators and operators always engineer a way to rationalize the fallout. To unpack this deeper level of manipulation, Coffeezilla returns to the core reason he was originally offered an investigation bounty at the PGL Major tournament: an offshoot platform tied directly to the ownership behind CSGORoll.

This sister casino, run by the corporate network Ancient Gaming and managed by Monarch's fiercest rival, was known as HypeDrop. Rather than wagering virtual Counter-Strike skins, HypeDrop introduced physical, real-world mystery loot boxes. Users deposited cash to unbox prizes that ranged from modest $10 digital gift cards all the way to high-end supercars like Lamborghinis. To lock users into an endless cycle of wagering, HypeDrop utilized an aggressive retention mechanic known as "Daily Cases." Under this tiered loyalty scheme, the more money a user gambled on the platform, the higher their account level climbed, unlocking increasingly valuable "free" daily unboxings designed to ensure players returned to the site every single day.

[20:29](https://www.youtube.com/watch?v=v6jhjjVy5Ls&t=1229s) The Daily Cases Loophole and the HypeDrop Collapse

Coffeezilla explains the deceptive mechanics behind HypeDrop, where users were promised "free money" and prizes every single day simply by logging on and opening "daily cases." This mechanism was fundamentally unsustainable, serving as an elaborate regulatory maneuver to convince the Danish gaming authority that HypeDrop did not qualify as gambling. Coffeezilla obtained a letter submitted by HypeDrop to the Danish regulator arguing that players could not legally lose money because the daily case payouts would theoretically refund all cumulative losses over a period of roughly three years.

```mermaid flowchart TD accTitle: HypeDrop Regulatory Loophole and Collapse Flow accDescr: Diagram showing how HypeDrop claimed daily cases refunded player losses to evade gambling regulations before shutting down. subgraph RegulatoryLoophole["The Regulatory Dodge"] Losses["Player Incurs Gambling Losses"] --> DailyCases["'Daily Cases' System"] DailyCases --> Argument["Argue to Regulators:\n'Zero Loss over ~3 Years'"] Argument --> Promo["Marketing: 'Win-win every time'"] end subgraph Collapse["The Site Collapse"] Promo --> Insolvent["Unsustainable Economics"] Insolvent --> Shutdown["March 27, 2024: Killian Shuts Down Site"] Shutdown --> RugPull["Daily Cases Cease / Users Rugged"] end ```

When confronted about the document, HypeDrop initially issued an outright denial. Only after Coffeezilla produced the actual file did the site confess to submitting it on a single occasion, while still insisting they never marketed the platform as a financial investment. Shortly thereafter, HypeDrop abruptly cut off communication, claiming it was their "last comment." Despite these denials, HypeDrop's promotional campaigns routinely leaned into the loophole, telling users "yes you'll always make at least your money back," asserting that "we offer return on what you invest through our daily reward system," and branding the experience as a "win-win situation every time." Because promising jackpots while simultaneously guaranteeing refunds to losers defies basic math, critics like Monarch labeled it an unsustainable Ponzi scheme. On March 27, 2024, site owner Killian shut down HypeDrop entirely, rug-pulling the player base that relied on the daily rewards to recover their balances.

- HypeDrop argued to Danish regulators that users could recoup 100% of losses via daily case drops over approximately 3 years. - Marketing materials explicitly framed the platform as an investment: “We offer return on what you invest through our daily reward system.” - The site abruptly shuttered on March 27, 2024, wiping out all pending case rewards. - Addressing the site closure and the rationale behind the live arena disruptions, Coffeezilla noted: “By removing their daily cases hype drop in my opinion stole from their users and effectively revealed their legal loophole to be a lie.”

---

[22:32](https://www.youtube.com/watch?v=v6jhjjVy5Ls&t=1352s) Confronting Juicy on HypeDrop and CSGORoll

Coffeezilla shifts his focus back to Juicy, a prominent gambling streamer who served as one of HypeDrop's largest online promoters. During their interview, Coffeezilla presses Juicy on his ethical boundaries after helping drive users into an operation that Monarch labeled a collapsed Ponzi scheme. Juicy attempts to deflect blame, insisting he merely played the product on stream without promoting the underlying reward structure:

> “So to my understanding I had never worked with the a gambling site that had rewards that function like a Ponzi scheme you know so when I was playing on it I'm not promoting the rewards you know I'm not like this is the most rewarding IRL gambling site so I was just playing with the product itself and you know making content around that.”

Juicy claims he was unaware of any investment framing and assumed the daily reward model was just an internal legal loophole. However, Coffeezilla cuts away to Juicy’s past video uploads, exposing direct lies. In clips broadcast to his viewers, Juicy explicitly tells his audience to “claim your daily cases they free monies,” promises that using code "Coach Juicy" yields free cases, and boasts that his daily claims paid out “a full-time salary every month.”

Turning to future accountability, Coffeezilla asks if Juicy plans to cut ties with CSGORoll, since it shares ownership with HypeDrop. Juicy refuses, rationalizing that he has already onboarded his audience and alleging that skin gambling sites are fleeting entities anyway. When pushed on whether remorse should translate into walking away, Juicy concedes his moral compromise:

> “Yeah I understand that completely but I feel like Counter-Strike sites aren't there to stay forever in the first place I don't think anyone's expecting them to stay forever and there really isn't many great options so yeah maybe it's up of me that I continue to do so absolutely but it really is one of the better options on the market right now and there's ton of dogshit on the market so yeah.”

---

[26:12](https://www.youtube.com/watch?v=v6jhjjVy5Ls&t=1572s) Multi-Million Dollar Streamer Incomes: Grim and Juicy

Examining the psychology behind these rationalizations, Coffeezilla points out that moral critiques bounce off streamers because the financial payouts are staggering. Streamers frequently rely on the defense that they stream strictly out of a personal passion for gambling. Even Grim had previously insisted that financial incentives were secondary. However, public corporate tax filings in Norway told a different story, showing Grim had pulled in millions of dollars.

When Coffeezilla confronts Grim with records indicating he made roughly $5 million in the prior year, Grim acknowledges the figures are accurate because Norwegian company earnings are publicly searchable. While acknowledging the optics of the situation, Grim doubles down:

> “And yeah you could say that the argument is obviously hypocritical because like I made a lot of money but like I don't do it because I make a lot of money I'd still do it if I didn't make a lot of money and like even if I wasn't paid I would still do it when I had excess money to do it cuz I like doing it and it might like sound like a lie but that's how I started it and that's how I was wanted to continue.”

Turning back to Juicy, Coffeezilla pushes him to disclose his own annual earnings. After initial hesitation, Juicy admits his yearly intake is right around the same $5 million mark as Grim, before taxes.

- Grim’s Norwegian corporate filings confirm he earned approximately $5,000,000 in a single year from gambling deals. - Juicy conceded during questioning that his annual streaming revenue mirrors Grim's mark at roughly $5,000,000. - Streamers frequently retreat to the rationalization that they would gamble on stream for free, despite receiving seven-figure corporate checks.

---

[28:31](https://www.youtube.com/watch?v=v6jhjjVy5Ls&t=1711s) The 75% Saturation and the Price of Walking Away

Citing research compiled by Jeff in his documentary on the CS scene, Coffeezilla reveals the sheer scale of casino money saturating the content landscape. Looking at the top 300 Counter-Strike streamers by total watch time from the start of the year, 226 were actively sponsored by at least one gambling platform, with some creators holding deals with up to five operators at once. This means roughly 75% of top streamers are directly bankrolled by gambling operators, cementing the casino industry as the financial engine sustaining the Counter-Strike scene.

```mermaid flowchart LR accTitle: Top 300 CS Streamer Sponsorship Breakdown accDescr: Simple chart depicting that 226 out of the top 300 Counter-Strike streamers are sponsored by gambling platforms. TopStreamers["Top 300 CS Streamers\n(Ranked by Watch Time)"] Sponsored["226 Streamers (75%)\nSponsored by Gambling Sites"] Unsponsored["74 Streamers (25%)\nUnsponsored / Refused"] TopStreamers --> Sponsored TopStreamers --> Unsponsored ```

Coffeezilla shifts from analyzing the majority who accepted the cash to the minority who walked away. He interviews an unnamed content creator who chose to reject the casino industry's advances. The creator describes the immense psychological toll of turning down generational wealth:

> “This is something I think about a lot cuz there have even been moments in time where I've been offered $300,000 for a month of gambling $5,000 an hour that could change my life that could retire my mom that could alter my family's lineage but I I keep turning it down that was when I was an even small smaller streamer than now that's crazy.”

Coffeezilla reflects on how warped the structural incentives are across esports and streaming. With life-altering sums—such as $300,000 a month—dangled in front of creators, relying on individual integrity is an impossible long-term solution to fix the industry's widespread rot.

[30:56](https://www.youtube.com/watch?v=v6jhjjVy5Ls&t=1856s) The Esports Addiction: How Gambling Funds Counter-Strike

When massive sums of money dominate an industry, self-regulation becomes impossible. Online casinos will not voluntarily cut off revenue streams, and individual content creators rarely reject deals that can permanently transform their lives and support their families. Coffeezilla observes that this financial reality extends well beyond creators and casinos into professional esports itself. Counter-Strike's competitive tier is saturated with betting sponsors: FaZe Clan partnered with Rollbit, the PGL Major was sponsored by 1xBet, and G2 Esports struck a deal with CSGORoll. When rival teams accept enormous payouts from gambling platforms, refusing that capital places an organization at a severe competitive disadvantage.

```mermaid flowchart TD accTitle: The Esports Gambling Dependency Cycle accDescr: Diagram showing how gambling money drives team funding, player acquisition, and competitive pressure in Counter-Strike esports.

subgraph RevenueEngine["Revenue Dynamics"] G["Gambling / Skin Casinos"] -->|"Pays 5x to 6x more than"| T["Traditional Sponsors (15–20% Value)"] G -->|"Massive Capital"| Teams["Esports Teams & Tier 2 Orgs"] end

subgraph CompetitivePressure["The Competitive Dilemma"] Teams -->|"Acquire Elite Rosters"| HighBudget["High Budgets & Better Talent"] HighBudget -->|"Dominates Tournaments"| Victory["Tournament Wins & Exposure"] NoGambling["Ethical Orgs (No Gambling Deals)"] -->|"Underfunded / Unprofitable"| LostRosters["Lose Talent to Rivals"] end ```

To break down the mechanics of the esports ecosystem, Coffeezilla interviews an esports team owner who previously commented publicly that the lower tiers survive almost exclusively off gamblers. The owner explains that Tier 2 Counter-Strike and beyond would shrink drastically without controversial skin-rolling and betting platforms footing the bill. A traditional sponsor typically provides only 15% to 20% of the financial value that a gambling brand brings to an organization. As the owner puts it:

> “If those sponsors weren't permitted, then the Tier 2 and beyond scene in CS specifically would likely wither or die or, at the very least, constrict to a very large degree.”

- The owner summarizes the dynamic bluntly: fans watching Tier 2 Counter-Strike should “thank your local betting crackhead in Twitch chat,” because those bettors inadvertently fund the teams' operating costs. - Competing without a gambling sponsor makes organizational profitability almost mathematically impossible, as teams with gambling backing can easily outbid rivals for top player talent.

[33:45](https://www.youtube.com/watch?v=v6jhjjVy5Ls&t=2025s) Plausible Deniability, Age Verification, and the PED Dilemma

Because gambling firms pay significantly more than conventional brands, organizations often overlook glaring red flags, such as sites permitting underage users without identity checks. When G2 Esports announced their partnership with CSGORoll, they added an "18+" badge to the promotional video for plausible deniability. However, the featured player in the campaign, Ilya "m0NESY" Osipov, turned 18 just days before the ad was published, meaning he was only 17 years old during filming. Coffeezilla describes this as a perfect metaphor for an industry built purely on surface-level optics. Notably, on the very day Coffeezilla publicly revealed his investigation into Counter-Strike gambling, CSGORoll announced for the first time that they would require all users to provide proof of age before wagering.

Coffeezilla compares taking a gambling sponsorship to using performance-enhancing drugs in sports:

> “The choice to take a gambling sponsorship is like the choice for PEDs in the Olympics or steroids in the WWE: you can say no, but if everyone else is using them and getting ahead, you choosing not to for ethical reasons will get you left behind and your peers will become more successful than you.”

This dynamic mirrors the early days of the scene. In 2016, FaZe Clan was secretly tied to the skin-gambling website CSGOWild. FaZe Banks openly explained on a podcast that the group needed roughly a million dollars to buy an elite CS:GO roster before team valuations skyrocketed to four or five million dollars, prompting them to launch the casino to finance the purchase. Today, FaZe Clan remains active at the top of the esport—taking second place at the PGL Major—and continues to rely on a reported multi-million-dollar deal with the crypto casino Rollbit.

[36:48](https://www.youtube.com/watch?v=v6jhjjVy5Ls&t=2208s) The Root Cause: Valve and the Systemic Trap

Coffeezilla emphasizes that the issue cannot be solved by simply attacking individual creators, esports brands, or standalone casinos. While individuals like Juicy remain responsible for promoting shady platforms to their audiences, simply removing one influencer or shaming an organization changes nothing, as the underlying financial incentives guarantee an immediate replacement. To address the problem at its foundation, accountability must move upstream past the teams and the casinos to the entity holding ultimate control over the entire virtual skin market: Valve.

The video concludes with an industry insider pointing directly to the game developer's passive tolerance of the skin-gambling market:

> “Valve definitely does have an underage gambling problem; they really don't have an incentive to stop it.”

- The speaker points out that Valve possesses complete administrative authority over Steam and Counter-Strike skins, acting as the ultimate "kingpin" collecting massive market fees while executing only minimal token crackdowns to keep the ecosystem operational.

## Mentioned 1xBet, Ancient Gaming, Boris, Clash.gg, Coffeezilla, Counter-Strike 2, CSGOEmpire, CSGOLotto, CSGORoll, CSGOWild, Danish Gaming Authority, FaZe Banks, FaZe Clan, Federal Trade Commission, G2 Esports, Grim, HypeDrop, Ilya 'm0NESY' Osipov, Jeff, Juicy, Killian, Monarch, PGL Major, Rollbit, RuneScape, Steam, Syndicate, TikTok, Trainwreckstv, Twitch, Valve, YouTube

## Video description Exposing the casinos, influencers, and esports teams that rely on CS2 Gambling to see how we can change things for the better. WATCH PART 3 NOW! ► https://www.patreon.com/posts/deception-lies-3-118500161?utm_medium=clipboard_copy&utm_source=copyLink&utm_campaign=postshare_creator&utm_content=join_link WATCH PART 1! ► https://www.youtube.com/watch?v=q58dLWjRTBE&

FULL RESPONSE FROM ANCIENT GAMING / CSGOROLL DIRECTOR OF PR https://drive.google.com/file/d/1Q3d8ZEsfbRzhQJd-0ECWeS-LuwJ7SIcH/view?usp=drive_link

Follow: ► Twitter: @coffeebreak_yt ► Instagram: @coffeebreak_yt

Credits: 3D Artist: Ed Leszczynski @LeszczynskiEd Video Editor: Harry Bagg @HarryRBagg End Credits Composer: Claire Wickes @clairewritesmusic Camera Motion Tracking: Mo-Sys Startracker https://www.mo-sys.com/product/camera-tracking/startracker/ Virtual Production Platform: Aximmetry https://aximmetry.com/

This video is an opinion and in no way should be construed as statements of fact. Scams, bad business opportunities, and fake gurus are subjective terms that mean different things to different people. I think someone who promises $100K/month for an upfront fee of $2K is a scam. Others would call it the "opportunity of a lifetime."

[Source](https://www.youtube.com/watch?v=v6jhjjVy5Ls)

中文简报

Valve皮肤经济催生离岸赌场与职业电竞战队 不受监管的皮肤交易使离岸博彩平台得以诱导未成年玩家,并资助职业《反恐精英》战队,若无Valve直接干预,市场改革将无法实现。 该纪录片调查了规模达数十亿美元的《反恐精英》皮肤博彩地下链条,追溯了Valve无门槛的开箱机制如何成为进入故意省略前期KYC核验的离岸无监管赌场的首要入口。Coffeezilla当面质询了年收入高达500万美元的顶流博彩创作者,拆解了他们的道德辩解,并强调他们在将年轻受众引向HypeDrop等掠夺性奖励机制中所起的作用。调查显示,观看时长排名前列的CS主播中约有75%,以及多个梯队的电竞赛事组织,均依赖博彩业的巨额资金维持生存,这造成了一种囚徒困境,使得坚守道德准则的参与者在经济上处于竞争劣势。最终,调查得出结论:如果不追究Valve作为从整个数字皮肤经济中获利的核心把关者的责任,仅针对个人的道德谴责收效甚微。 一项针对9000多名玩家的调查显示,约70%的《反恐精英》赌客在未成年时就已涉赌,这一现象受到无需年龄验证的开箱机制以及不进行前期KYC的离岸网站的推动。 (0:00) 主要皮肤博彩业务产生着惊人的收入,Clash的联合创始人报告每月收入约为5000万美元,且相关网站的总流量几乎是全球最大持牌在线赌场的两倍。 (7:00) 按观看时长计算的前300名《反恐精英》主播中,约有75%获得了博彩平台的赞助,Grim和Juicy等知名创作者透露各自税前年收入约为500万美元。 (28:31) 电竞战队面临着结构性困境:博彩赞助商支付的费用是传统品牌的5至6倍,如果没有皮肤赌场的支持,二线《反恐精英》战队在竞技和财务上均难以为继。 (30:56)

Original transcript

[0:00] they have made millions and millions of [0:03] Euros I'm going to be delivering Justice [0:06] to these mother I get told that they had [0:09] posted Flyers everywhere in my city and [0:12] I mean everywhere high schools malls [0:14] they need to go in even if there's a [0:16] security guard even if they're going to [0:17] be taken away if somebody goes home [0:19] walking they will be fired they sent 18 [0:22] people outside my door having a quote [0:25] unquote protest we are having war with [0:28] other sides as well most of the Cs go [0:30] gambling sites are scams I want to know [0:33] who's really behind this thing who's [0:35] really the victims and who's really the [0:40] villain in our last video we got bribed [0:42] but instead of taking it we exposed the [0:44] people who offered it now it's time to [0:46] expose the rest of the Counter-Strike [0:48] gambling industry and the influencers [0:50] who promote it for Millions a year let's [0:53] start with the basics of what [0:54] Counter-Strike gambling really is though [0:56] Counter-Strike is a first-person shooter [0:58] video game where you can buy C medic [1:00] options for your guns called skins you [1:03] can get these by paying $2.50 to open a [1:05] loot box it spins like a slot machine [1:08] and you get a random skin there's an [1:10] entire economy that's grown out of their [1:12] Rarity and you can sell these skins for [1:14] pennies or up to tens of thousands of [1:16] dollars depending on their Rarity you [1:18] can then take those skins to [1:19] Counterstrike casinos where they will be [1:22] accepted as currency instead of cash [1:25] they use their real world value to turn [1:27] this video game into Vegas you can play [1:29] slots roulette and more all with a video [1:32] game skin think of it like their version [1:34] of poker chips and when I first began to [1:37] investigate this I thought why don't [1:39] people just use a regular Casino you [1:41] know why use Counterstrike skins for [1:44] this well I decided to investigate by [1:47] interviewing a bunch of people who do [1:49] use Counter-Strike casinos and I found a [1:51] disturbing Trend I've been in the [1:53] gambling community in Counter Strike for [1:55] about I'd say since 12 years old I [1:59] started gambling on Counter Strike when [2:00] I was probably 13 years old 13 years old [2:03] 14 years old I think I was 14 started [2:06] gambling on csgo at the age of 12 and 13 [2:08] pretty much right around there my 13th [2:10] birthday yeah most of the people I spoke [2:12] to started gambling underage and it was [2:15] while they were playing the game and [2:17] this trend continues beyond the [2:19] anecdotal this YouTuber named Jeff [2:22] surveyed over 9,000 players and he found [2:24] that around 70% of Counter-Strike [2:26] gamblers start underage now themed [2:29] casinos have always had an audience but [2:31] with Counterstrike there is an underage [2:34] gateway to all of this because all you [2:36] need is $2.50 to get your first skin [2:38] through valve and you don't even need to [2:40] show ID which is a huge part of this [2:43] even worse when you go from the game to [2:44] the casinos which are hosted on third [2:47] party websites most don't ID the players [2:49] either or if they do it's only after [2:52] you've already gambled thousands of [2:53] dollars which is a bit like if a liquor [2:54] store asked for ID after you drank 10 [2:57] bottles of liquor it's obviously absurd [3:00] but it's also very profitable because [3:02] underage gamblers not only are new [3:04] customers they're way more likely to [3:06] become gambling addicts which is how [3:08] casinos make most of their money these [3:11] days most physical casinos have a strict [3:14] ID policy at the door this isn't because [3:17] they're good people it's because they're [3:18] heavily regulated and would lose their [3:20] Gambling License if they knowingly [3:22] allowed underage players but [3:24] Counter-Strike gambling is fundamentally [3:26] different regulation for these casinos [3:28] is almost non-existent because they're [3:30] offshore in Malta kurau Cypress and most [3:33] of them are using loopholes to pretend [3:35] that this isn't even gambling at all [3:37] look I'm not going to go into too much [3:38] detail here because different casinos [3:40] use different loopholes but suffice to [3:43] say this has been going on a long time [3:46] back in 2016 a very similar story broke [3:49] in a big way about scam casinos and [3:51] underage gambling problems in [3:53] Counterstrike and everyone was [3:55] understandably enraged valve even got [3:57] involved had to send out cease and [3:58] assist letters even the f DC went after [4:00] influencers but when the dust settled [4:02] there weren't that many Consequences [4:04] part of the reason was because of these [4:06] loopholes in fact the most infamous [4:08] Casino csgo Lotto claimed not even to be [4:11] a casino at all they said they were a [4:12] sweep Stakes now this is obviously [4:15] absurd it's not true but none of that [4:17] matters because it got them out of [4:19] trouble and so the same types of casinos [4:21] have continued just with new owners and [4:24] new names what you're left with then is [4:26] an industry that is unregulated if [4:29] anything self-regulated which I [4:31] discovered creates its own race to the [4:33] bottom problem because consumer [4:35] protection in an unregulated Market will [4:38] literally drive away your customers for [4:40] example remember Monarch from the last [4:43] video and his Casino csgo Empire one of [4:46] the things they do that I actually think [4:48] is good is they block certain IPS where [4:51] gambling is illegal and they admit that [4:53] what they're doing is gambling now you [4:55] can easily get around these Geor [4:57] restrictions with a VPN but it's sort of [4:59] of an extra hurdle most Counter-Strike [5:02] casinos don't even do this and listen to [5:04] One Gambler explain why this tiny [5:07] decision to just geoblock one region the [5:10] US affected who he chose to gamble with [5:13] so when I went onto Empire while it's [5:15] still easy to bypass it you could just [5:17] put a VPN just takes an extra 5 minutes [5:19] CS roll I can just once again type it [5:22] into my browser um deposits oh you're an [5:26] American yes correct yes so no no no no [5:30] um VPN restriction no GE blocking yes [5:34] correct so unrolled zero VPN blocking [5:37] zero any bypassing on Empire there is [5:39] blocking but it it truthfully is very [5:43] easy to bypass right that makes sense [5:46] most people end up going with the casino [5:48] who asks them less questions requires [5:50] less from you even if you're not [5:52] illegally trying to gamble you just [5:54] don't want to have to put in personal [5:56] information anything like that this all [5:59] taught me that in the world of [6:00] unregulated gambling it's more [6:02] complicated than just saying okay [6:04] casinos want toddlers gambling it's also [6:07] market dynamics right you get a [6:09] Competitive Edge by not regulating less [6:12] work more customers more money which [6:14] means you can't just solve the problem [6:17] by wagging your finger at bad casinos [6:20] the entire system is broken as long as [6:22] these loopholes exist why would anyone [6:25] change in fact some websites like [6:29] adverti their lack of Regulation as a [6:31] feature not a bug the CEO even bragged [6:34] on Twitter quote Clash just paid out its [6:36] biggest one-time Cash Out instantly with [6:39] no verification couldn't be more happy [6:41] with the product and reputation we are [6:43] building this guy sees it as a badge of [6:45] honor to do no checks and it is a [6:48] positive reputation if you want to [6:50] appeal to underage players money [6:53] launderers or just people who want to [6:54] avoid a hassle a VPN and putting in an [6:57] ID and this is all a huge problem [7:00] but how big of a problem is it you might [7:03] wonder after all we're talking about [7:05] video game skins how much money could [7:07] this industry really be worth I wondered [7:09] the same thing so I asked around for how [7:12] much these casinos are making and got [7:14] several estimates one owner claims he [7:16] has an eight fig business and someone [7:18] who worked for his partner claims that [7:19] is true how much does he make on Clash [7:22] his partner Boris right um also known as [7:24] dogs playing poker friendly chemist he [7:27] told me directly that it was making [7:28] about 50 Mill million a month that's a [7:31] lot of money and this roughly matches [7:33] what the popular gambling Counter-Strike [7:35] YouTuber told me as well saying he'd [7:37] estimate these sites are making tens of [7:39] millions monthly and there are so many [7:41] of these sites that the YouTuber Jeff [7:43] estimated it all in a different way [7:45] looking at the total amount of website [7:47] traffic compared to a popular online [7:49] casino so when you bring them together [7:51] those csgo websites bring almost double [7:54] the traffic of the biggest online casino [7:56] today and this online casino declared a [7:58] gross revenue of 2.6 billions in 2022 [8:01] now that doesn't mean the csgo websites [8:03] are grossing more but it's a great [8:05] element to put things in perspective so [8:07] even though it's tough getting an exact [8:09] number since these casinos might [8:11] overestimate or underestimate for many [8:13] reasons either way it's clear these [8:15] businesses are making huge amounts of [8:18] money and there's many of these casinos [8:21] we've just focused on a few in our [8:22] videos but there's so many more of these [8:24] websites each potentially making [8:26] millions a month and no one's going to [8:29] change their behavior until they're [8:30] incentivized to by regulation across the [8:33] board until then less regulation will [8:36] always mean a wider customer base even [8:38] if some of those customers are underage [8:40] the irony here being the biggest voice [8:43] of change so far really has been Monarch [8:48] from the last video you guys know I no [8:50] fan of this guy's methods but I'll be [8:53] honest there's large parts of his public [8:55] arguments that are hard to argue with he [8:57] claims to understand the underage [8:59] problem because that's how he started as [9:01] well how I got into gambling myself was [9:04] when I was 13 and I was playing [9:06] Roomscape and how the Dual Arena was [9:10] like a Gateway druck for me that's how [9:13] that's how gambling started for me and [9:15] that's where it went in third party [9:16] sites I'm just disgusted about this full [9:19] loop I think that the the full case case [9:22] system on on Steam is pretty horrible [9:25] the way how there is no kyc there's uh [9:29] it's such a powerful tool for getting [9:33] children and even adults I think even [9:35] adults they have a gambling problem it's [9:37] not only like a it's not a age exclusive [9:42] thing it's just a machine that makes [9:44] people gamble imagine there's a kid who [9:48] just plays CSO and they open one one box [9:51] pretty innocent they get their mom's [9:53] credit card they spent €2 to open a box [9:56] okay then they open a second box third [9:57] box fourth box and so on and soon they [10:01] see their favorite influencer playing on [10:04] some third party case opening site and [10:08] this is where it's like it's like [10:11] switching from from weed straight to I [10:15] don't know amphetamine or something and [10:17] they just go deeper and deeper into this [10:19] Rabbid hole and soon they are [10:21] addicted and the next thing you know [10:24] when they want to stop gambling it's [10:27] easy to easy to just shut like close [10:29] post these websites but what happens [10:31] when you go on social media you you go [10:34] on YouTube Instagram twitch Tik Tok any [10:37] platform what do you get you get [10:40] gambling ads everywhere the algorithm [10:42] starts feeding you it's like imagine you [10:45] are addicted to heroine and then [10:47] everywhere you go you just see like [10:48] heroine heroin heroine here look your [10:51] hero is staying heroine so we have to [10:54] separate these two things out yes this [10:57] guy's methods are terrible but I'll [10:59] admit it's nice to see a casino owner [11:02] talking honestly about their industry [11:03] and admitting that what it is is [11:05] gambling and not some kind of sweep Stak [11:08] but even if Monarch says he wants to [11:10] change without the actual power of a [11:12] regulator he just ends up having to [11:15] harass people threaten people which [11:16] isn't going to get him anywhere not only [11:18] that he's no saint either his own [11:20] website doesn't ID people right away [11:23] according to csgo's Empire's terms they [11:25] only require you to verify your age if [11:28] you want to withdraw more than 2,000 [11:29] coins in crypto or deposit substantial [11:32] amounts of money if you withdraw via [11:34] skins there is no limit so even the guy [11:38] who claims he started underage gambling [11:40] he understands the gateway drug that [11:43] skin Bing websites act as even he [11:46] refuses to fully ID customers because he [11:49] knows he'd go out of business I'm really [11:51] committed to I want to make it strict or [11:53] strictor like you can't jump to the deep [11:56] end just like immediately on on one day [11:59] that would make us go out of out of [12:00] business but really my my end goal is I [12:03] want to do full full clone kyc before [12:05] anybody deposits I want to make it as [12:07] clean as possible this more than [12:09] anything shows the limit to the let's [12:12] self-regulate idea right even the [12:15] biggest critic of underage gambling [12:17] can't bring himself to actually ID his [12:20] customers up front because his [12:22] competitors won't do it and he says it [12:23] would ruin his business so maybe the [12:26] solution isn't with the casinos at all [12:30] maybe it's a good time to talk about the [12:32] influencers who promoted instead because [12:35] when I learned and asked about people [12:37] who got into this type of gambling I [12:40] wondered how did they get into it in the [12:42] first place who did they hear about it [12:44] from and one thing kept popping up one [12:46] of the primary ways I actually learned [12:48] was through YouTube popped up in my [12:50] recommended page because I was a big fan [12:51] of Counterstrike I'd play it you know in [12:53] my free time some gambling videos popped [12:55] up and I thought hey you know streamers [12:58] um kind of exposed me to that to that [13:01] space first I saw it online I saw a [13:03] bunch of these YouTubers um playing it [13:05] found out CSO gambling just pretty much [13:08] through watching people on Twitch and [13:09] YouTube juicy was one of them I actually [13:11] remember very vividly he was this guy [13:13] that would do all these case openings on [13:15] different websites and such he was very [13:17] much affiliated with them he had codes [13:19] and all these things I've been [13:20] surrounded by like syndicut and like [13:23] FaZe Clan for example I watched uh my [13:27] favorite YouTubers right YouTubers and [13:29] streamers of course are going to be one [13:31] of the main advertising vectors it's [13:34] been that way since 2016 influencers are [13:37] the main lifeblood of these casinos fast [13:40] forward 8 years later it's just [13:42] different influencers different casinos [13:44] making the money than before but unlike [13:46] casinos who we know intuitively are [13:48] blood sucking leeches on society [13:50] influencers by contrast [13:53] are they're [13:55] um uh well we expect more from them I we [13:59] don't get it but we expect more so I [14:02] wanted to confront three different [14:04] influencers who do this gambling [14:06] streaming stuff of different sizes and [14:08] get their opinions on why they promote [14:11] this stuff and how they can possibly [14:13] justify it I I don't think people should [14:15] gamble honestly on the sites it [14:16] shouldn't gamble at all um but I enjoy [14:20] doing it so it's what I do if that makes [14:23] any sense I don't know no no no that [14:25] part that part of it makes sense that [14:28] the part where you want to do it so you [14:29] continue to do it that makes sense but [14:32] let's say I'm like I don't think smoking [14:35] is good for you but I'm I like smoking [14:37] it makes sense that I would smoke it [14:39] doesn't make sense that I would get like [14:42] go promote it to to get people smoke [14:45] yeah no I no I definitely understand [14:49] that perspective too [14:51] um and I like yeah it's it's it's a very [14:54] good argument and it's like you can't [14:56] really argue against it right it's just [14:58] it's not a good thing uh but it's [15:00] something that I still enjoy doing and [15:02] so I'm going to continue to do it is it [15:04] just too much money that's an acceptable [15:06] answer it's just too much money to turn [15:08] down um I'd say in the beginning it [15:11] probably was too much money at this [15:13] point um like it's not about the money [15:17] for me it's just I I really enjoy doing [15:19] it well in the videos I I don't [15:21] sugarcoat I don't uh try to convince [15:24] people that winning or gambling is a way [15:26] or a solid option to flip a quick Buck [15:30] uh even in my wins I preface that this [15:32] is not a this is not a sustainable thing [15:35] so it's not something that I [15:38] necessarily I I I don't know you can [15:40] watch the videos and decide for yourself [15:42] if it feels like promotion but that's [15:44] how I reason it to myself I don't even [15:46] you know use the rewards I don't [15:47] advertise it at all so I don't you know [15:51] the rewards [15:52] thing it's more of like like I said I [15:56] don't advertise it so I don't feel do [15:59] adverti you get paid to advertise it [16:01] right not the reward system no I I don't [16:04] mention the rewards no no no I'm saying [16:06] I'm saying C CSO rooll we're talking [16:08] about the gambling side we both know [16:11] it's not going to be good for people and [16:13] then you're kind of saying why don't [16:14] really promote it I don't really [16:16] advertise it but in a way if you didn't [16:18] promote or advertise it they wouldn't [16:20] pay you Millions dollars yeah I I [16:23] watched your train Rex video and you [16:25] said the same thing you're like the less [16:26] dirtier of the dirt bags so I guess I [16:29] would call myself that and ultimately if [16:31] you watch the video you can decide like [16:35] how less dirty is he really but yeah [16:38] that's my answer you know most people [16:40] are going to unfortunately gamble with [16:43] or without certain streamers right [16:46] obviously it's intended to be like [16:49] a McDonald's ad you see McDonald's ad [16:51] you see a Big Mac you're going to go you [16:53] know I'm craving a big Ma so it's the [16:55] same concept you're saying like oh I'm [16:57] just like kind of promoting McDonald's [16:59] whatever no it's not so it's not like [17:02] promoting McDonald's let's be honest [17:03] gambling is a terrible addiction my [17:05] closest friend has a very very bad [17:08] gambling addiction he'll get [17:10] paid on let's say a Tuesday and by [17:13] Tuesday night or Wednesday morning his [17:15] whole paycheck is gone for two weeks and [17:16] then he has no money and no matter what [17:18] I do to intervene to help that [17:21] individual try to hold his money to help [17:23] him sit there and self-exclude he finds [17:25] ways because it's an addiction it's just [17:27] as bad as any other drug of that [17:29] dopamine Rush yeah the answers were part [17:31] admissions part rationalizations they [17:33] all knew gambling was bad but they'd [17:35] stopped short of actually doing [17:36] something about it because they were [17:37] making money from it even when they knew [17:40] people whose own lives were hurt by it [17:42] so if you know the harm firsthand you've [17:44] seen it in your own life how do you [17:48] justify pedaling that drug as you call [17:51] it it's a uh it's going to happen in my [17:54] opinion right and like there is no [17:56] justification can I say like I'm a drug [17:58] dealer sure you could you know you're [17:59] going to label certain streamers are [18:01] going to be labeled as a drug dealer um [18:04] in essence and that's okay I guess if [18:06] you people are going to view it that way [18:09] I mean I was how do you how do you I [18:11] want to know how you view it up because [18:14] because you said you said it was kind of [18:16] like a drug so I want it is a drug I [18:18] mean it hits the dopamine levels hell I [18:20] I I I get hit dopamine levels if I hit [18:23] big it's oh yeah you know and then that [18:24] becomes a YouTube [18:26] Trick I feel bad I do right I hate to [18:31] hear when people say I've lost money I [18:33] hate it dude I really it it crushes me [18:36] because some people legit do it because [18:38] they're bored and then they lose [18:40] everything they have and it is a [18:41] terrible feeling to hear that right not [18:43] to question their sincerity but I've [18:45] heard all of them say that they hate [18:47] when people get addicted they don't want [18:49] to see anyone hurt but they refuse to [18:51] stop even though they know casinos are [18:53] run on addicts fun fact [18:57] clash.io at admitting he was proud of [18:59] not iding players also admitted that the [19:02] majority of their revenue comes from a [19:04] tiny fraction of their most addicted [19:06] players quote less than 1% of clash [19:09] accounts make up 80% of our Revenue it's [19:12] just an admission from their founder [19:14] it's an Open Secret so these influencers [19:16] can empathize about how horrible [19:18] addiction is but they know that's where [19:19] their paycheck comes from the CEO of [19:21] clash has a profile on Twitter that says [19:23] never gamble The House Always Wins but [19:25] ironically his house is probably from [19:28] people gambling Ling the fact of the [19:29] matter is that these people say with [19:31] their mouth I feel terrible I feel bad [19:33] but when it comes to actually changing [19:34] they never do even when they directly [19:36] scam people they will still find a way [19:38] to rationalize it and this next part is [19:40] pretty dark but for a moment we're going [19:42] to have to go back for a second to the [19:44] pg major tournament and talk about the [19:46] thing I was originally offered a bounty [19:49] to investigate a specific casino that is [19:52] owned by the same group as csgo R but [19:54] this one is called hype drop it's owned [19:57] by monarchs Arch Nemesis hype drop was a [20:00] casino where instead of gambling [20:02] Counter-Strike skins you could gamble [20:03] real world items like real world loot [20:06] boxes for example you could pay for a [20:09] real loot box that would get you [20:11] anything from like a $10 gift card to a [20:14] Lamborghini for example it's just [20:16] gambling with physical items but the [20:18] real Secret Sauce of this website was a [20:20] loyalty program called The Daily cases [20:23] where the more you spent the higher [20:24] level you got the more you'd get these [20:26] daily cases which essentially were free [20:29] money every single day you could go on [20:31] their website and open these daily cases [20:34] and theoretically you'd get free stuff [20:37] free money which if that sounds [20:40] unsustainable it is it was all part of a [20:43] scheme it turns out to make the Danish [20:45] government believe that hype drop was [20:46] not actually gambling I received a [20:49] letter hype drop gave to the Danish [20:51] regulator arguing players could not lose [20:53] money on their site because over time [20:56] the daily cases paid back all the losses [20:59] over roughly 3 years this is one of [21:01] those loopholes we talked about where [21:03] they're going to argue they're not [21:05] actually gambling because you can't lose [21:08] now of course I asked typ drop about [21:10] this and initially they denied ever [21:12] sending this letter eventually I showed [21:14] them that I had their document and they [21:16] finally confessed saying they did do it [21:18] on one occasion but denied trying to [21:21] pass it off as an investment they then [21:23] quickly Scurry away saying this is our [21:26] last comment I bet it is because they [21:29] got caught making bad faith arguments to [21:31] the Danish government this type of [21:33] loophole is why in their promotional [21:36] material hype drop said things like yes [21:38] you'll always make at least your money [21:40] back and quote we offer return on what [21:42] you invest through our daily reward [21:45] system and quote it's a win-win [21:47] situation every time now it only takes a [21:50] few moments to realize that offering [21:51] jackpots and money back to losers isn't [21:55] going to work it has to be a scam which [21:56] is why many people like Monarch called [21:59] this thing an unsustainable Ponzi scheme [22:02] and I can't believe I'm saying this but [22:05] he's right on March 27th 2024 Killian [22:09] the owner announced that he was shutting [22:11] down the site effectively rug pulling [22:13] his customers who were all relying on [22:16] these daily cases to make their losses [22:18] back this is part of what monarchs paid [22:20] goons were yelling about at the pgl [22:23] majors by removing their daily cases [22:25] hype drop in my opinion stole from their [22:27] users and effectively revealed their [22:30] legal loophole to be a lie now with that [22:32] all understood let's Circle back to this [22:35] guy juicy a gambling streamer who we [22:37] heard from earlier he was easily one of [22:39] the biggest promoters of hype drop and I [22:40] wanted to know given that he has widely [22:42] promoted a scam what was he going to do [22:45] to make things right so let's talk about [22:49] um hyp drop at this point this has been [22:52] kind of what precipitated the pgl majors [22:55] according to Monarch he says I had to [22:57] protest HP drop it was a Ponzi scheme [23:00] that collapsed and CS go rolls next now [23:03] when I was looking up hype drop you were [23:05] one of the people who was promoting it [23:07] like one of the bigger YouTubers I saw [23:09] maybe the biggest what's your take on [23:11] promoting this stuff where's your [23:13] ethical line for what you will take what [23:16] you won't take [23:17] on yeah so to my understanding I had [23:21] never worked with the a gambling site [23:24] that had rewards that function like a [23:26] Ponzi scheme you know so when I was [23:29] playing on it I'm not promoting the [23:31] rewards you know I'm not like this is [23:32] the most rewarding IRL gambling site so [23:36] I was just playing with the product [23:38] itself and you know making content [23:40] around that um so with obviously it's [23:44] it's really annoying and [ __ ] when [23:46] the rewards get first off cut down and [23:49] then second off now there is no reward [23:51] offering in the sites going away like [23:54] I'm obviously very upset not just for my [23:58] own intent but also mainly for the [24:00] people who especially if people put [24:02] money into hyp drop thinking of it like [24:05] a good monetary investment versus like [24:07] I'm just gambling you know I'm pretty [24:10] sure from my understanding that wasn't [24:11] like a advertised thing at least they [24:13] weren't advertising they weren't saying [24:15] hey you got to tell them about this [24:17] great investment option I think that was [24:20] more of a a legal loophole that they [24:22] were you know trying to operate he's [24:26] just lying about some of this he says he [24:27] didn't adver I his daily cases but I [24:29] think he didn't think I'd watch his [24:31] videos because he definitely did daily [24:33] reminder claim your daily cases they [24:34] free monies coach juicy will get you [24:36] three free cases so might as well I mean [24:39] my daily cases used to pay a filthy [24:41] amount of money it was a full-time [24:42] income just claiming them claim this [24:44] every day dude we're making a full-time [24:45] salary every month yeah he calls the [24:48] daily cases basically a full-time salary [24:51] but I thought surely after seeing that [24:53] that hype drop scammed people he would [24:55] cancel his sponsorship with the same [24:57] company like it's the sister Casino csgo [25:00] role right he has to stop that now that [25:03] he's scammed his audience he did cancel [25:05] it right so let me ask you does that [25:08] mean you're no longer going to work with [25:10] csgo rooll since they're run by the same [25:14] people uh well I've already promoted the [25:16] site and I already have fans who use the [25:18] site and the I I don't think the reward [25:21] offering there is going to change but [25:25] yeah I mean it's unfortunate that I [25:28] think you can see the logic of no one [25:31] thought hype drop was going to rug [25:34] people from these cases these daily [25:35] rewards and if you are regretful [25:38] wouldn't that turn into some kind of [25:40] action on your part to like change who [25:41] you're working [25:43] with yeah I understand that completely [25:46] but I feel like Counter-Strike sites [25:49] aren't there to stay forever in the [25:51] first place I don't think anyone's [25:53] expecting them to stay forever and there [25:55] really isn't many great options so yeah [25:57] maybe it's up of me that I continue to [25:59] do so absolutely but uh it really is one [26:02] of the better options on the market [26:04] right now and there's ton of dogit on [26:07] the market so yeah and there it is [26:12] absolutely he doesn't want to change [26:14] absolutely he's not going to stop what [26:15] he's doing at the end of the day past [26:18] all the rationalizations that's what it [26:19] comes down to it doesn't matter what you [26:21] show them what you prove to them they're [26:23] making too much money and that is the [26:26] part that I was struggling to like [26:28] really get from these people is they [26:30] would always say Like I Do It For the [26:31] Love of gambling man I would do it if [26:33] nobody paid me of course they always do [26:36] it getting paid um but this is the [26:38] single biggest cope of gambling [26:39] streamers in fact even Grim told me this [26:42] who we spoke to earlier about getting [26:43] harassed luckily for me though his tax [26:46] records are public so I knew that he was [26:48] actually making a few million dollars a [26:51] year and at a few million reasons to lie [26:53] about why he was doing what he did so I [26:55] decided to ask him if maybe the the [26:58] money did play a role somebody reached [27:00] out to me they said hey I found Grim's [27:03] business he made $5 million last year is [27:06] that true and does that undermine what [27:08] you said about that it's not about the [27:11] money um uh yeah no that is true uh like [27:16] what one of the I guess Downs with nor [27:17] is everything's public if they know my [27:19] company name even just my name they they [27:21] Google around they find it so like [27:23] everything that I make is uh is public [27:25] and yeah you could say that the argument [27:27] is obviously hypocritical because like I [27:29] made a lot of money but like I don't do [27:31] it because I make a lot of money I'd [27:33] still do it if I didn't make a lot of [27:34] money and like even if I wasn't paid I [27:36] would still do it when I had excess [27:38] money to do it cuz I like doing it and [27:40] it might like sound like a lie but [27:42] that's how I started it and that's how I [27:44] was wanted to [27:45] continue it sounds like the $5 million [27:47] might have something to do with it it [27:49] just just just but that's fine I mean [27:51] yeah no I mean like I said I I 100% [27:54] understand what people would think like [27:55] oh no it's only because of the money but [27:57] like I know myself that it isn't only [28:00] because of the money but it's obviously [28:01] great don't get me wrong how much did [28:03] you make this [28:04] year I'd rather not say but I could say [28:07] it's a it's a [28:08] lot come on juicy tell us tell us [28:14] look I so I actually don't know the [28:16] exact answer myself but I can tell you [28:18] it's going to be right around Grim's [28:19] number which I know he told you already [28:22] Grims 5 million yeah and then I got to [28:24] pay a stupid tax rate on that but it's [28:28] probably around there both made about $5 [28:31] million last year so it's kind of [28:34] obvious why they're not going to stop [28:35] based on just a moral argument and I [28:37] began to wonder like how many of these [28:40] influencers take these deals because [28:42] they are so profitable well luckily [28:44] thanks to the hard work of Jeff who we [28:46] mentioned earlier whose documentary you [28:47] should definitely go watch I found out [28:49] it's almost everyone this is at to 300 [28:51] csgo streamers since the beginning of [28:53] this year ranked by watch time of 300 [28:56] 226 are currently sponsored by at least [29:00] one of them some have up to five we are [29:02] looking at [29:04] 75% [29:05] 75% it's insane Counterstrike gambling [29:09] is basically funding over half of the [29:12] scene with these ridiculous paychecks [29:14] and I began to wonder not about the [29:16] people who said yes but the people who [29:17] said no they're the minority I wanted to [29:19] know for the people who said no how much [29:22] were they offered and why didn't they [29:24] take [29:26] it this is something [29:28] I think about a lot [29:31] cuz there have even been moments in time [29:35] where I've been offered $300,000 for a [29:38] month of [29:39] gambling $55,000 an hour that could [29:43] change my life that could retire my mom [29:46] that [29:47] could alter my family's lineage [29:51] but I I keep turning it [29:54] down that was when I was an even small [29:58] smaller streamer than now that's [30:02] crazy [30:03] yeah one of the things I've been [30:05] thinking a lot about is like how to [30:07] change this you know if even if well [30:10] look if what does even change look like [30:11] right that's part of what I'm thinking [30:13] about is like what does even change look [30:14] like for this [30:16] industry and one thing that I came to is [30:19] like the incentives have to change [30:21] because they're so out of whack the [30:23] second you allow gambling sponsorships [30:27] and streamers to like get sponsorship [30:30] deals how are you going to stop someone [30:32] from taking that amount of money you're [30:35] a good person so you just don't want to [30:38] do it that's your personal line but it's [30:41] I think it's hard for just even somebody [30:43] who's a good person to say no you know [30:46] it's only because you know what it would [30:47] do to people but that is such a crazy [30:51] amount of money you know this interview [30:54] almost ruined me on this story I began [30:56] to wonder if change was even possible [30:59] when money like this is in the field for [31:02] play like the casinos aren't going to [31:03] regulate themselves because they lose [31:05] customers and there's so much money at [31:06] stake most influencers aren't going to [31:08] say no because there's so much money at [31:10] stake and they could change their life [31:12] and their family's lives by taking these [31:14] deals the more I looked into it you [31:16] can't expect all the people to be immune [31:20] from this influence all at the same time [31:22] which is the only way to make change it [31:24] wasn't just the influencers or casinos [31:26] either even Esports the most [31:28] professional supposedly side of the game [31:31] was flooded with gambling almost every [31:34] professional team had a gambling sponsor [31:36] for example FaZe has roll bit pgl major [31:39] was sponsored by 1X bet G2 was sponsored [31:42] by csgo roll and this creates the same [31:45] problem that it created with the [31:46] influencers if a sponsor is offering you [31:49] buckets of money it becomes really hard [31:51] not to take because if you don't take it [31:53] your competitor will in fact one e [31:56] Sports owner argued the entire ecosystem [31:59] in Counterstrike especially in the lower [32:01] leagues is basically funded by the [32:03] gambling industry and gambling addicts [32:06] so I called him to understand more of [32:08] how this works can you walk me [32:11] through how gambling functions in the [32:14] Esports economy the issue is that or the [32:17] issue I guess at hand that you're [32:19] talking about is that this activity is a [32:21] NE by more controversial sponsors in in [32:23] gambling uh and skin rolling sites um if [32:27] those spons weren't permitted then the [32:29] tier 2 and Beyond scene NCS specifically [32:31] would likely wither or die or or at the [32:33] very least constrict to a very large [32:35] degree so that's what I meant by my [32:37] tweet uh when that you should thank your [32:39] local betting crackhead in twitch chat [32:42] uh if you're a fan of tier 2 Cs and [32:45] Beyond then the reason you're watching [32:48] that team play is probably because of [32:49] that they're better um to note uh this [32:53] is also true of a lot of ORS [32:56] profitability so the value that [32:57] traditional sponsors bring in for a tier [33:00] 2 or even more you know with with G2 and [33:03] roll bit for example the value that a [33:04] traditional sponsor brings in versus a [33:06] gamble sponsor is like 15 or 20% of the [33:08] value so you don't really turn that down [33:11] as an Old owner unless you've got very [33:13] specific moral crims or disagree with [33:15] gambling on a personal L but does this [33:18] inflate the economy where if you're not [33:20] taking a gambling sponsorship you're [33:22] almost at a disadvantage because your [33:24] economics and what you're able to play [33:26] players and attract Talent is much less [33:29] than somebody who for example has a [33:31] gambling deal and is way making way more [33:33] money than you yeah to would agree [33:35] that's true I think um very very few [33:37] organizations are able to do it without [33:39] gamber largely if you don't have gamber [33:41] you're almost certainly going to be [33:43] untable you heard it there you almost [33:46] can't compete at the highest level [33:48] without a gambling sponsor because they [33:50] pay so much more than everyone else and [33:53] if everyone else is doing it they will [33:56] have more money to spend on on a team [33:58] than you and get better players and [34:01] therefore likely beat you there's just [34:03] no more profitable sponsor to turn to [34:07] and so a lot of people actually take the [34:10] money so even if that sponsor is a site [34:13] that allows miners to play with no ID [34:16] who cares just slap an 18 plus sticker [34:18] in your ad for them and get plausible [34:21] deniability that's what G2 did when [34:23] announcing their csgo rooll sponsorship [34:26] a depressing fact about this video is [34:27] the star of it a guy named Mony turned [34:30] 18 only days before they announced the [34:33] sponsorship which means in the video it [34:35] was filmed when he was 17 he was [34:39] underage in their Casino supposedly 18 [34:42] plus and no one cared a perfect metaphor [34:45] for this entire industry it's all Optics [34:48] I have to tell you by the way the exact [34:49] day I announced I was investigating [34:51] Counter-Strike gambling csgo roll did [34:54] announce for the first time that they [34:55] were going to be asking all users to [34:57] prove that they're 18 before playing [34:59] whether or not it's coincidence they [35:01] announced it same day I don't know take [35:04] it for what it is maybe it's a token [35:06] gesture they'll roll back or maybe it's [35:08] a sudden change of heart for the Youth I [35:10] don't know either way the point I'm [35:12] making is that for many people and [35:14] professional teams the choice to take a [35:16] gambling sponsorship is like the choice [35:18] for peeds in the Olympics or steroids in [35:22] the [35:22] WWE you can say no but if everyone else [35:26] is using them and getting ahead you [35:29] choosing not to for ethical reasons will [35:31] get you left behind and your peers will [35:34] become more successful than you it's a [35:36] depressing cycle that has me flashing [35:38] back to the csgo wild days several years [35:41] ago and realizing we're right where we [35:43] started csgo wild in 2016 was a gambling [35:46] website secretly owned slightly disputed [35:49] by fazeclan and according to faze Banks [35:52] his motivation to do that was pretty [35:55] simple my motivation for doing it [35:57] actually was at the at the time we [35:58] weren't making enough money to buy a CS [35:59] Go Team all in the uh the Venture was [36:02] going to cost us like a million dollars [36:03] and we definitely did not have anything [36:06] close to that so my brain like I just we [36:08] got to finesse it we got to figure out [36:09] how to make the money to buy this team [36:11] now because in the next six months year [36:13] this is going to this team's going to be [36:15] worth like four or5 million and we need [36:17] we we're not going to be able to get [36:19] into this game which we which in our [36:21] heads we need it in this game yeah when [36:23] you hear it it sounds crazy sounds like [36:24] a cope but his plan actually worked FaZe [36:27] Got Away With It FaZe Clan has a [36:30] Counter-Strike team that won second [36:32] place in the infamous pgl major all [36:34] these years after csgo wild it's alive [36:37] and well and still funded by the way by [36:40] gambling just by a different gambling [36:43] website now it's roll bit it's [36:45] reportedly a multi-million dollar deal [36:48] now look I know seeing this is all very [36:50] depressing but we've actually learned [36:53] some really valuable things firstly we [36:55] can't fix this at the individual level [36:58] of influencers Esports teams or even [37:01] casinos doxing people harassing them [37:04] doesn't fix it or the underlying [37:06] problems it's a deep systemic problem of [37:09] incentives of course acknowledging that [37:13] also doesn't absolve individuals I [37:15] wouldn't dare say it's okay for juicy to [37:17] do what he does where people have been [37:19] scammed and he continues to work with [37:22] the same parent company that said if he [37:24] stopped it wouldn't change things [37:26] suddenly someone one would take his [37:28] place so if we're serious about trying [37:30] to solve this problem we have to look [37:32] farther up the food chain than [37:34] influencers even then casinos even then [37:37] Esports leaks we have to zoom out and [37:40] see the root [37:49] cause valve definitely does have [37:51] underage gambling problem they really [37:54] don't have an incentive to stop it [37:56] underage [37:58] middle age overage however you want to [38:00] slice it I think they have all the [38:03] responsibility I mean you could pass me [38:05] some of that if you want but ultimately [38:07] they're the Kingpin reaping in all of [38:09] the money or majority of the money and [38:11] there's a reason why they haven't killed [38:13] it yet they've possessed the power for [38:15] all these years but they allow it to go [38:18] and I feel like they do the bare minimum [38:19] Crackdown to allow it to keep operating [38:45] [Music] [38:50] [Music] [38:54] sh [38:57] [Music]