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Valve responds to Washington State's cease and desist letter

A Counter-Strike: Global Offensive skin. Provided by Jacob Wolf

Counter-Strike: Global Offensive and Steam developer Valve Corporation has responded today to a cease and desist issued by the Washington State Gambling Commission regarding the skins gambling market.

Valve has notified the Commission that it has taken action against Counter-Strike: Global Offensive gambling websites and that it will continue doing so, but that it will not close off its API and OpenID softwares, which allow users to log-in to gambling websites using their Steam accounts. Valve also states that it will not remove skins from its game, based on how common in-game purchases are across most video games.

The Commission's cease and desist, dated Sep. 27, claims that the use of in-game skins as gambling currency is illegal and unregulated. The Commission initially gave Valve until Oct. 14 to respond. Valve requested an extension to Oct. 17. The letter was not provided to the public until earlier today, around 3 a.m. ET.

"I am disappointed that Valve Corporation missed Friday's deadline, but encouraged that they have committed to responding [Monday]," Commission director David Trujillo said in a press release. "I look forward to reviewing their response in detail."

Trujillo's colleague, commissioner Chris Stearns, said in the same press release, "The type of approach Valve decides to take will be very important."

The Commission has yet to respond to the public regarding Valve's response.

Valve first sent its cease and desist letter to skins gambling websites -- such as CSGO Lounge, CSGO Wild, CSGO Lotto and more -- in July, claiming that those sites must stop using skins for commercial gambling use by Jul. 30. Many of those sites have shut down or changed their business models away from gambling since that letter.