Skins in The Game | Page 5

Lounge’s Seven-Month, $1 Billion Handle Betting On Lounge in 2016: By The Numbers TOTAL HANDLE 103M SKINS In the first seven months of 2016, the final time period in which Lounge operated skin betting at full capacity, the site took in approximately 103 million skins in handle. An analysis involving the listed prices of hundreds of thousands of these skins determined that the average real-world value of an item bet on Lounge was approximately $9.75. TOTAL MATCHES ~2,800 Based on these figures, Lounge took in the USD equivalent of $1 billion in betting handle during the first seven months of 2016, over a period that involved roughly 2,800 professional CS:GO matches spanning dozens of events and hundreds of exhibitions. Despite widespread investment in esports and the growth of all forms of skin wagering in 2016, this period did not feature the highest consistent betting volumes in Lounge’s short history. The site’s 2016 single-match high handle of 321,000 skins, for example, was bested more than 80 times by matches in 2014 and 2015. This could be attributable to the rise of numerous skin wagering options competing for consumers’ attention, or to the erosion of consumer trust following skin gambling scandals. Regardless, month-over-month betting volumes and average handles were on the rise headed into the summer of 2016. Then, at the height of the professional CS:GO season, just as the title eclipsed League of Legends and Dota2 to become the mostwatched esport on casting platform Twitch, Valve decided to take action against skin gambling sites. Figures obtained over seven-month period in 2016 before Lounge shut down Four tournaments—the Intel Extreme Masters tournament in Katowice, the Major League Gaming tournament in Columbus, the ESL One tournament in Cologne, and Turner and WME/IMG’s ELEAGUE in Atlanta—attracted 18.3 million skins, or 18 percent, of the 103 million total items wagered during the period. TOTAL HANDLE (USD) $ 1B PER-MATCH HANDLE ,000 37SKINS PER-MATCH HANDLE (USD) $ 358,000 2