What is skin betting, how does it work and has it been declared an illegal form of gambling?
The Gambling Commission revealed 45 per cent of kids as young as 11 have lost money playing the online games
GAMBLING experts have warned thousands of young people are losing money playing video games online which offer them the chance to make real money.
The Gambling Commission's annual report has found 45 per cent of 11-16 year olds are aware of skin betting. But what is it?
What is skin betting and how does it work?
Skins are in-game items, used within some of the most popular video game titles, the Gambling Commission said.
The collectable items provide change the appearance of a player's weapons, avatar or equipment used in the game.
Sometimes skins can be earned within a game, but they can also be purchased with real money.
On some game websites, players are able to trade and sell their skins, for the chance to win more valuable ones.
Skin betting is essentially a quick way to acquire the most desirable skins, achieve statues and then make real money from the real-like currency.
The items are accessible from the UK for several years after creation.
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Is skin betting a form of illegal gambling?
The ability to convert in-game items into cash, or to trade them for other items of value means the skins eventually become articles of money.
But a gambling licence is required for in-game items to be converted into cash, or traded for other items of value.
As a result, the Gambling Commission considers it an offence for online websites to provide facilities for gambling, especially when they are made available to children.
Since skins won on such websites can be sold and turned back into real-world money, some have deemed skin betting as unlicensed gambling.
As long as players are over the age of 18 and websites which provide the games have a licence, skin betting is not ruled as an illegal gambling practice.
Earlier this year, the Gambling Commission prosecuted people for the first time - after they we were found to be running an unlicensed gambling website connected to a video game.
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