Skins Gambling in the UK: DCMS Calls for Stronger Regulation and Safeguards

Last month, DCMS published a report highlighting the rapid growth of skins gambling in the UK, particularly among adolescents, which DCMS views as a potential gateway into problem gambling with real currency. The report calls for comprehensive regulation and stronger age verification and emphasises the central role of the Gambling Commission in enforcing licensing, harm reduction, and safeguarding standards for young users.

 

What is skins gambling and why is DCMS concerned about it?

Skins gambling involves the betting of virtual items (known as skins) obtained in online video games. It has become increasingly popular, despite skins gambling websites not being considered legal in Great Britain and the Gambling Commission actively working to remove and block such sites. Due to its growing popularity, the Department for Culture, Media and Sport (DCMS) commissioned a report on the topic, particularly around the potential harms. This is largely because skins gambling is disproportionately common among younger males, particularly adolescents and is seen as gateway into traditional monetary gambling.

 

Key findings from DCMS report

DCMS reported that in February 2025 alone, over 50 skins gambling websites were found to be accessible from the UK. Globally, 6.9 million unique visits to 45 such sites were recorded during that month, with the UK accounting for 3.93% of the traffic. Research indicates that individuals aged 11–14 are more than twice as likely to engage in skins gambling compared to those aged 22–24. According to the DMCS report, skins gambling is consistently linked to traditional monetary gambling and higher levels of problem gambling severity.

Skins gambling games often mimic those found on mainstream gambling platforms, blending traditional gambling features with newer, non-traditional games of chance such as loot boxes and mines. DMCS’s view is that these games often incorporate harmful design elements, promote the illusion of control and foster a sense of competition and engagement similar to traditional gambling.

The key regulatory issues noted were jurisdictional in nature, with many platforms operating without a licence, outside the jurisdictional reach of national regulators. Even where national regulators do have jurisdiction, the international nature of such sites means operators can easily relocate or rebrand. Other regulatory issues identified by DMCS include a lack of robust age verification and responsible gambling measures across the sector.

The general recommendations made by the report were, firstly, that any regulatory programme should support innovation as the gambling industry is continually evolving and any measures should not stifle this innovation and creativity. Secondly, there must be clarity and consistency, to increase stability and harmonisation of skins betting laws. Thirdly, legislation should be flexible, able to “adapt to the ever-evolving landscape of digital currencies and virtual goods”.

Several policy recommendations were made for different stakeholders:

• For the UK government and DCMS - Launch national awareness and harm-prevention campaigns around skins gambling.
• For the GB Gambling Commission - Require skins gambling operators to obtain licences and comply with age verification, fairness, and harm reduction standards.
• For game developers – build age-based safeguards, monitor third-party misuse, and collaborate with researchers and regulators to develop best practices.
• For educators and youth services – incorporate skins gambling into digital resilience and financial literacy education and provide parents and young people with resources on how to manage risks of gaming-related gambling.

 

Direction of travel for future regulation

The report concluded that there is an urgent need for comprehensive regulation and policy reform. Whilst the report emphasised the need for regulatory intervention, it contains little information as to what form this might take. Instead, the report focusses on the Gambling Commission’s ongoing enforcement work in this area such as ensuring operators obtain the correct licences and implement sufficient safety measures. In addition, the report highlights the need for game developers to implement age-based safeguards and monitor third-party misuse, and for schools and regulators to lead educational programs on the risks of skins gambling.

The Gambling Commission’s current position on this topic is set out in 2017 paper which noted that skins betting was a “predominant example of in-game gambling”. The Gambling Commission has in the past prosecuted British websites that promote gambling using virtual assets on charges of encouraging underage gambling and advertising unlawful gambling.

 

Key takeaways for game developers and publishers

Game developers and publishers should keep game mechanics and partnerships relating to skins under review from a gambling law perspective and keep an eye out for any updated position paper or future guidance from the Gambling Commission on this topic.