Skins Gambling Needs Regulation, Says UK Govt

by Jamie Smith, 29 September 2025

The UK government has called for urgent reform of skins gambling, which it says could be a way for young people to get drawn into addiction issues.

Skins gambling is often linked to VR technology. JESHOOTS-com, Pixabay

Key Facts:

• Skins gambling refers to virtual items available in games
• The Department for Culture, Media and Sport (DCMS) is collecting new evidence around this part of the market
• Skins gambling is linked to video game loot boxes, which are also becoming increasingly controversial around the world
• Platforms offering skins gambling often provide anonymity

According to DCMS, skins betting is “becoming increasingly popular” and there are worries over its potential addiction risks.

Skins betting relates to virtual items. They are earned or purchased in video games, or on gambling sites, and are linked to potential underage gambling problems.

DCMS set up a rapid evidence report in order to assess the issue more closely, and it noted that anonymity and lack of age verification are particular problems when it comes to skins.

A statement said skins betting could therefore lead to the “development of unhealthy gambling behaviours at a young age”.

Countries such as Finland and Sweden have reported rises in skins betting this year, with this part of the gambling sector expanding at a rapid rate across the continent.

Skins Gambling Sites ‘Not Legal’ In UK

The DCMS report clarified that skins gambling sites do not fall under what is considered to be legal betting in the UK.

This is because they fail to follow the requirements of regulated gambling forms, such as sports betting. UK regulator the Gambling Commission therefore “actively works to remove and block these sites for use by Britons” according to a statement by DCMS.

Despite this, more than 50 skins gambling websites have been identified by the DCMS research that could be accessed from the UK.

When website traffic data for 45 of these was assessed, DCMS found that in February 2025, globally, 6.9 million unique visits to websites offering skins gambling were recorded.

The most popular skins websites examined for the new report by DCMS showed that they recorded higher monthly global traffic than many well-established traditional online betting companies, such as Betfred, Betvictor and Betway.

Compliance Challenges

DCMS pointed out the current laws as they stand is not the primary problem for skins gambling, as it is already considered to be illegal in many markets.

Instead, the UK government pointed out that gambling related to skins raises “challenges in enforcement and industry compliance”.

Many of the skins gambling platforms that can be accessed from the UK operate without licences, which means that they typically run outside the reach of regulators.

DCMS said: “This creates significant challenges for consumer protection, particularly for children and young people who may access these services.”

The government added that there is an “urgent need for collective regulation across jurisdictions that explicitly classifies skins gambling as a form of gambling and holds operators to the same standards as traditional gambling platforms”.

Measures such as mandatory age verification for skins gambling sites to prevent young people gambling illegally were recommended.

DCMS is also calling for “transparency, fairness, and responsible gambling protocols” to be implemented as a priority at such sites.