Match-fixing comes to the world of e-sports

Comment

Image Credits: Sam Churchill (opens in a new window) / Flickr (opens in a new window) under a CC BY 2.0 (opens in a new window) license.

Aurangzeb Durrani

Contributor

Aurangzeb Durrani is a former professional gamer and has been in the e-sports industry since 2006. He is currently the manager of international marketing for Kill Ping.

More posts from Aurangzeb Durrani

In the world of professional eSports these days, money doesn’t rain — it pours. The stakes are high and the competition can be cut-throat, especially given the payday waiting at the end of a match.

But the flood of money has brought an unexpected innovation in the way players are cashing in (and cashing out) in the vast virtual world of online gaming — match-fixing.

Major Scandals have Rocked eSports

Long an unfortunate fixture in other professional sports like boxing, baseball, basketball, soccer and even golf, the eSports world isn’t immune from the phenomenon. In fact, a case from earlier this year shows just how deeply … and quickly… match-fixing has embedded itself in global competition and how seriously sponsors are treating the problem.

Game developer and competition sponsor Valve announced that 21 Counter-Strike: Global Offensive players who were accused of willingly participating in match-fixing in competitive matches back in early 2015, have been permanently banned from the professional gaming events.

According to Valve, the bans were imposed on seven players after their accounts were investigated following a match between NetcodeGuides and iBUYPOWER. Valve learned that the players exchanged several high-value items among themselves after the match.

However, the motive of match-fixing was not just to trade items among each other. Instead, bets valued at $10,000 were also placed on players and they received around $7,000 worth of skins too.

This incident underscores a major problem with online multiplayer games, which is that they have an in-game economy which allows players to trade off high-value items for real money. It’s created a fertile ground for illegal betting as some players risk their reputation and career to get these high-value items from other players.

Photo courtesy of Flickr/Adrian.
Photo courtesy of Flickr/Adrian

 

DOTA 2, Valve’s second most popular competitive game, has also seen its fair share of scandals. Back in 2013, a Russian player named Aleksey “Solo” Berezin bet against his own team in a major event and won $322. Since then, the number “322” has become synonymous with bad plays and is a common nickname for players who deliberately throw away a game for money.

A similar 322 scandal came into the spotlight back in 2014 after MSI Evolution and Mineski, two popular DOTA 2 teams from Philippines, were accused of match fixing. The matches were played between Team Immunity and Mineski and another between MSI and Mineski. Since these were Star Ladder games, both teams found it more profitable to trade the playoff spot for money.

This may explain why Valve has finally decided to take stern action and dish out harsh punishment on players involved in match-fixing or illegal betting. By bringing down the hammer on the 21 CS:GO players with a permanent ban, Valve intends to set an example to discourage players from engaging in such illicit acts.

ESports analysts have pointed out that Valve’s decision to hand permanent bans may act as a precursor that encourages other game developers to adopt similar measures.

“I think the main issue it raises is that we aren’t in a position to have consistency across games or even across tournaments because we don’t have an over-arching federation or association that agrees the rules and the punishments,” said Paul “ReDeYe” Chaloner, a distinguished name in eSports. “Right now though, I do think the publishers should take a greater role in this and for the most part they are.”

Valve’s decision should ideally have dissuaded all professional eSports athletes around the world from engaging in match-fixing. However, another scandal has rocked the world of eSports this year.

The latest scandal happened in South Korea, where a famous eSports athlete hatched an ingenious plot to increase earnings through match-fixing. The player is none other than Lee “Life” Seung Hyun, a favorite for this year’s season of World Championship Series StarCraft II, and inarguably one of the best StarCraft players in the world.

“Life” was detained by police for several hours and was also questioned by match-fixing investigators for his alleged involvement in illegal betting and match-fixing.

There’s a reason why this scandal is bigger than the ones that shocked the online gaming world last year.

Previously, the players who were implicated in match-fixing scandals were low-tier profiles like Team Prime or waning superstars like Ma “sAviOr” Yoon. “Life”, on the other hand, is a big name in the world of eSports and his involvement should be enough to open the industry’s eyes to the growing problem of match-fixing.

4833860651_6b2808204d_b

How the World Reacted

So far, online game developers, sponsors, and events’ organizers around the world have expressed solidarity in the global mission to eliminate the match-fixing problem. Many of them have issued public statements warning players of a zero tolerance policy for anyone found involved in such illicit and dishonest activities.

“With an issue as severe and delicate as match fixing, you really need to operate on a case by case basis. In principle, I agree with the lifetime bans that Valve issue, but at the same time if you don’t have a sufficient handle on the specifics then justice is still not always served,” said Richard Wells, Founder and Owner of H2K Gaming. “I feel that Valve has perhaps not quite got this balanced correctly yet but they have certainly created an effective deterrent.”

Wells joins a chorus of people who have voiced concerns regarding the severity of the bans. After all, imagine the outrage if the soccer prodigy, Messi was awarded a ban from major events based on nothing more than allegations. These bans effectively end the careers of eSports athletes.

“Obviously, I commend Valve for taking action against match-fixers to help ensure that we keep the sport clean,” said eSports game analyst, Richard Lewis. “The absence of an infrastructure with a regulatory body puts developers in a weird spot and I think, for the most part, Valve handled this uncharted territory well.”

Not every infraction in eSports deserves a lifetime ban, according to Lewis, but every offense needs to be investigated and punishment should be meted out in accordance with the severity of the crime.

“Context is incredibly important and no two instances of match-fixing will ever be alike. I’m of the opinion that there has to be a road back to redemption in all but the most egregious of abuses,” Lewis said.

In the case of the 21 CS:GO players, Valve’s decision does not mean that the players won’t be able to play tournaments sponsored by different game developers. So technically, it’s not the end of their careers.

Screen Shot 2016-04-22 at 5.40.39 PM
eSports commentator Richard Lewis (right)

 

Will the Benefits Outweigh the Risks?

Introducing strict regulations certainly seems like the right move to impress upon players the trouble that illegal betting and match-fixing can bring to their newly popular sport and their own careers. A permanent ban from professional gaming and irreparable damage to their reputation should ideally dissuade every player from match-fixing and illegal betting.

And yet, it seems like the specter of match-fixing still looms over the world of eSports, especially because there are many players for whom the rewards of match-fixing outweigh the risks involved.

“We know match-fixing is still taking place in low-stakes games and while it might be out of sight and out of mind at the moment, it’s something we have got to get on top of before it gets out of hand. ” said Lewis. “I know Valve and everyone involved with Counter-Strike wants to get this right and I hope moving forwards we can implement a system that is firm but fair to professionals and viewers alike.”

 

More TechCrunch

Tags

The deck included some redacted numbers, but there was still enough data to get a good picture.

Pitch Deck Teardown: Cloudsmith’s $15M Series A deck

The company is describing the event as “a chance to demo some ChatGPT and GPT-4 updates.”

OpenAI’s ChatGPT announcement: What we know so far

Unlike ChatGPT, Claude did not become a new App Store hit.

Anthropic’s Claude sees tepid reception on iOS compared with ChatGPT’s debut

Welcome to Startups Weekly — Haje‘s weekly recap of everything you can’t miss from the world of startups. Sign up here to get it in your inbox every Friday. Look,…

Startups Weekly: Trouble in EV land and Peloton is circling the drain

Scarcely five months after its founding, hard tech startup Layup Parts has landed a $9 million round of financing led by Founders Fund to transform composites manufacturing. Lux Capital and Haystack…

Founders Fund leads financing of composites startup Layup Parts

AI startup Anthropic is changing its policies to allow minors to use its generative AI systems — in certain circumstances, at least.  Announced in a post on the company’s official…

Anthropic now lets kids use its AI tech — within limits

Zeekr’s market hype is noteworthy and may indicate that investors see value in the high-quality, low-price offerings of Chinese automakers.

The buzziest EV IPO of the year is a Chinese automaker

Venture capital has been hit hard by souring macroeconomic conditions over the past few years and it’s not yet clear how the market downturn affected VC fund performance. But recent…

VC fund performance is down sharply — but it may have already hit its lowest point

The person who claims to have 49 million Dell customer records told TechCrunch that he brute-forced an online company portal and scraped customer data, including physical addresses, directly from Dell’s…

Threat actor says he scraped 49M Dell customer addresses before the company found out

The social network has announced an updated version of its app that lets you offer feedback about its algorithmic feed so you can better customize it.

Bluesky now lets you personalize main Discover feed using new controls

Microsoft will launch its own mobile game store in July, the company announced at the Bloomberg Technology Summit on Thursday. Xbox president Sarah Bond shared that the company plans to…

Microsoft is launching its mobile game store in July

Smart ring maker Oura is launching two new features focused on heart health, the company announced on Friday. The first claims to help users get an idea of their cardiovascular…

Oura launches two new heart health features

Keeping up with an industry as fast-moving as AI is a tall order. So until an AI can do it for you, here’s a handy roundup of recent stories in the world…

This Week in AI: OpenAI considers allowing AI porn

Garena is quietly developing new India-themed games even though Free Fire, its biggest title, has still not made a comeback to the country.

Garena is quietly making India-themed games even as Free Fire’s relaunch remains doubtful

The U.S.’ NHTSA has opened a fourth investigation into the Fisker Ocean SUV, spurred by multiple claims of “inadvertent Automatic Emergency Braking.”

Fisker Ocean faces fourth federal safety probe

CoreWeave has formally opened an office in London that will serve as its European headquarters and home to two new data centers.

CoreWeave, a $19B AI compute provider, opens European HQ in London with plans for 2 UK data centers

The Series C funding, which brings its total raise to around $95 million, will go toward mass production of the startup’s inaugural products

AI chip startup DEEPX secures $80M Series C at a $529M valuation 

A dust-up between Evolve Bank & Trust, Mercury and Synapse has led TabaPay to abandon its acquisition plans of troubled banking-as-a-service startup Synapse.

Infighting among fintech players has caused TabaPay to ‘pull out’ from buying bankrupt Synapse

The problem is not the media, but the message.

Apple’s ‘Crush’ ad is disgusting

The Twitter for Android client was “a demo app that Google had created and gave to us,” says Particle co-founder and ex-Twitter employee Sara Beykpour.

Google built some of the first social apps for Android, including Twitter and others

WhatsApp is updating its mobile apps for a fresh and more streamlined look, while also introducing a new “darker dark mode,” the company announced on Thursday. The messaging app says…

WhatsApp’s latest update streamlines navigation and adds a ‘darker dark mode’

Plinky lets you solve the problem of saving and organizing links from anywhere with a focus on simplicity and customization.

Plinky is an app for you to collect and organize links easily

The keynote kicks off at 10 a.m. PT on Tuesday and will offer glimpses into the latest versions of Android, Wear OS and Android TV.

Google I/O 2024: How to watch

For cancer patients, medicines administered in clinical trials can help save or extend lives. But despite thousands of trials in the United States each year, only 3% to 5% of…

Triomics raises $15M Series A to automate cancer clinical trials matching

Welcome back to TechCrunch Mobility — your central hub for news and insights on the future of transportation. Sign up here for free — just click TechCrunch Mobility! Tap, tap.…

Tesla drives Luminar lidar sales and Motional pauses robotaxi plans

The newly announced “Public Content Policy” will now join Reddit’s existing privacy policy and content policy to guide how Reddit’s data is being accessed and used by commercial entities and…

Reddit locks down its public data in new content policy, says use now requires a contract

Eva Ho plans to step away from her position as general partner at Fika Ventures, the Los Angeles-based seed firm she co-founded in 2016. Fika told LPs of Ho’s intention…

Fika Ventures co-founder Eva Ho will step back from the firm after its current fund is deployed

In a post on Werner Vogels’ personal blog, he details Distill, an open-source app he built to transcribe and summarize conference calls.

Amazon’s CTO built a meeting-summarizing app for some reason

Paris-based Mistral AI, a startup working on open source large language models — the building block for generative AI services — has been raising money at a $6 billion valuation,…

Sources: Mistral AI raising at a $6B valuation, SoftBank ‘not in’ but DST is

You can expect plenty of AI, but probably not a lot of hardware.

Google I/O 2024: What to expect