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A Brief History of CSGO Betting and its Demise

In Summer 2013, Valve incorporated cosmetic weapon skins into CSGO.
Even back then, some items were quite expensive; being only accessible through expensive case openings, knives such as karambits were priced as high as 70 dollars.
In late 2013, CSGOLounge came to be, a site which allowed users to bet their cosmetic item skins on competitive CSGO pro matches for a chance of winning other users' skins, but only if they win.
The site started really spiking in popularity around the Katowice 2013 major, during which hundreds of thousands of users participated in item gambling on the pro matches for the event. Communities rose up to discuss gambling events and pro matches, such as /csgobetting which has now reached over 50000 subscribers.
During this whole time, there were no laws against child gambling that were enforced by CSGO Lounge. Pretty much anyone could bet there.
The first major case of drama came along with the IBP vs Netcode Guides match in summer 2014, which was apparently rigged (proven about half a year later though, so all skins lost in that match were permanently lost).
Despite that drama, betting sites like lounge continued to grow in popularity and keep getting bigger and bigger. Sites like CSGO Jackpot came to be, which focused more on pure gambling rather than logical sports betting. CSGO coin toss sites would have users flip a coin and risk their bet for the chance at doubling it. As was later discovered, in many cases these sites were heavily rigged in favor of the site owners.
In 2014 and 2015, even in early 2016, many streamers would stream videos of themselves participating in gambling of skins, either winning lots of money, or losing a large amount. This would not only entice the little kids watching them to gamble their skins on the sites and want to get involved, but also help the gambling sites in gaining popularity.
There were many measures that Valve took to counteract issues caused by gambling, such as account hackeres and scammers, but even when these measures would harm the livelihood of places like lounge, they would personally contact them and help them to ensure that their bots would stay operational.
Throughout the next 2 years from 2014, all of these trends continued. Some sites like trade.ninja and fanobet rose and fell, but overall, gambling continued to rise. And with it, so did the popularity of CSGO. People who were never even interested in CSGO in the first place would buy copies for themselves and friends purely out of desire to get involved in gambling (bear in mind this was just some users though). New skins and cases came out, the game continued to grow.
The end came quickly and abruptly. It was discovered quite recently that many of the popular sites for csgo gambling were rigged (no proof for Lounge, but many other sites) and that the owners of the sites would play on these gambling sites whilst simultaneously rigging the games so that they would gain more attention for their site.
Surprisingly, due to this and surely many other legal issues, Valve took action. They sent a cease and desist letter to over 20 popular CSGO gambling sites, and essentially told them to stop their activities within 10 days or to face legal repercussions. Many sites closed their doors and returned skins to users, but up until today, not CSGO Lounge. Despite not saying anything for 10 days, the might giant has fallen, as today CSGO Lounge announced that users from many major countries INCLUDING THE UNITED STATES are no longer permitted to gamble skins on their site, and most likely may end up limiting the gambling options on their site as a whole in the near future.
And so that is the end of CSGO gambling as we knew it. It was a fun ride guys, I hope you all enjoyed it as much as I did. I will say though that I'm happy it is over. It caused a LOT of issues for this game and the people that got involved with it, so I think this is for the best.
I made a video to help give a visual to all of this stuff, so if you're interested in actually seeing what all this stuff looked like and getting a more in-depth explanation, check it out here:
https://www.youtube.com/watch?v=J16ZvU9vIDY
Let me know what you guys think about this and the recent turn of events; did I miss anything? Let me know that as well, thanks!
EDIT: Updated with a fixed date or two at the start, replaced ESL Cologne 2014 with Katowice 2013.
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