In-play purchases such as “skins” are creating high-risk situations in esports, warns Imogen Moss, associate solicitor at licensing firm Poppleston Allen.
Skins gambling—where players acquire virtual items such as cosmetic “skins” for characters or weapons and wager them—has been growing for several years. While these items were originally designed to enhance the player experience, they are now increasingly used as currency in online betting, raising serious concerns around underage gambling.
Following mounting pressure from parents and gambling harm reduction groups, the DCMS commissioned a report to examine the risks associated with skins gambling, particularly among vulnerable groups including children and young people. 
The report highlights the overlap between skins gambling mechanics and traditional gambling. It identified several harmful design features, including:
- Illusion of control – games allow players to set risk levels and make in-game choices, even when outcomes are predetermined.
- Player-vs-player modes – competitive structures that encourage higher-risk behaviours.
The findings suggest that these mechanics may foster addictive behaviour by generating excitement and reinforcing repeat play.
Key recommendations from the report include:
- Launching a national awareness and harm prevention campaign around skins gambling.
- Requiring skins gambling operators to be licensed by the Gambling Commission.
- For game developers to:
- Build age-based safeguards into skin trading systems.
- Collaborate with regulators and researchers to define best practice for digital item design.
- Avoid designing skins that enable illegal gambling.
The report concludes that skins gambling should be formally recognised as gambling under UK law, requiring regulatory oversight. It also calls on game developers to take more responsibility for preventing children from accessing gambling-style features.
With skins gambling continuing to grow in popularity, all eyes are now on the DCMS to see what regulatory steps it will take next.
The full report can be viewed here.
📄 For questions about this update, please contact Imogen Moss, Licensing Solicitor at Poppleston Allen:
📞 0115 953 8500
📧 i.moss@popall.co.uk
