A little bit of a diversion today, but just wanted to belatedly post a bit of commentary on the whole recent game/virtual item gambling controversy.
EDIT: 2016-07-14 – Shortly after I posted this, Valve announced that they were going to start shutting off third party API access if it’s used for gambling (no I’m not claiming they did this as a result of me posting, but rather just noting why I didn’t mention this rather big development below). This morning Twitch essentially also banned CS:GO item gambling (though they’re trying to avoid any admission of guilt or complicity by simply deferring to Valve’s user agreements).
Like all of you, work and family demands leave little time for gaming. One of the few games I enjoy — one that allows for short duration drop-in sessions and has been a worthwhile mental diversion when dealing with difficult coding problems — is Counter-Strike Global Offense (CS:GO).
The game is a classic twitch shooter. It has a very limited, curated set of weapons, and most rounds are played on a limited number of proven maps.
I’m a decent player (though it was the first game where I really had that “I’m too old for this” sense, with my eleven year old son absolutely dominating me). It’s a fun, cathartic diversion.
Nine games out of ten I end up muting every other player as the player base is largely adolescent, and many really want to be heard droning on. The worst players seem to be the most opinionated, so with every match the guy sitting at the bottom in points and frags always has the most to say about the failure of everyone else’s gameplay (this is an observation that holds across many industries, including software development. This industry is full of people who’ve created nothing and achieved little explaining why everyone else is doing it wrong).
The CS:GO community also has an enormous gambling problem, as you may have heard. This came to a head when a pair of popular YouTubers were outed as owners of a CS:GO skin gambling site. These two had posted a number of arguable “get rich….quick!” type videos demonstrating very highly improbable success, enticing their legions of child fans to follow in their possibly rigged footsteps.
Skins, to explain, are nothing more than textures you apply to weapons. The game often yields situations where other players spectate your play, and having unique and less common skins is desirable as a status thing. So much so that there is a multi-billion dollar market of textures that people will pay hundreds of dollars for (Steam operates a complex, very active marketplace to ensure liquidity).
The whole thing is just dirty and gross, with Valve sitting at the center of an enormous gambling empire mostly exploiting children all spending those birthday gift cards. It casts a shadow over the entire game, and those awaiting Half Life 3 will probably wait forever, as Valve seems to be distracted into only working on IP that features crates and keys.
The machinations of crates and keys, winning rewards that Valve provides a marketplace denominated in real currencies, is gambling: if you’re paying real money for small odds of something worth more money (again, Valve provides the marketplace and helpfully assigns the real-world value), it’s a matter of time before the hammer falls hard on these activities. Valve is operating in a very gray area, and they deserve some serious regulatory scrutiny.
Anyways, while being entertained by that whole sordid ordeal, the topic of “fair” online gambling came up. From this comes the term “provably fair”, which is a way that many gambling enterprises add legitimacy to what otherwise might be a hard gamble to stomach.
It’s one thing to gamble on a physical roulette wheel, but at least you know the odds (assuming the physics of the wheel haven’t been rigged…). It’s quite another to gamble on an online roulette wheel where your odds of winning may actually be 0%.
“You bet black 28….so my `random’ generator now picks red 12…”
So the premise of provably fair came along. With it you can generally have some assurance that the game is fair. For instance for the roulette wheel the site might tell you in advance that the upcoming wheel roll — game 1207 — has the SHA1 hash of 4e0fe833734a75d6526b30bc3b3620d12799fbab. After the game it reveals that the hashed string was “roaJrPVDRx – GAME 1207 – 2016-07-13 11:00AM – BLACK 26” and you can confirm that it hashes and that the spin didn’t change outcomes based upon your bet.
That’s provably fair. It still doesn’t mean that the site will ever actually payout, or that that they can’t simply claim you bet on something different, but the premise is some sort of transparency is available. With a weak hash (e.g. don’t use SHA1. That was demonstrative) or a limited entropy checked string it might allow players to actually hack the game. To know the future before the future.
You can find provably fair defined on Wikipedia, where the definition is suspect, seemingly posted by someone misusing it and being called on it (“it is susceptible to unscrupulous players or competitors who can claim that the service operator cheats” What?)
Anyways, the world of CS:GO gambling is a bit interesting to evaluate the understanding of the term provably fair.
csgolotto, the site at the center of all of the hoopla, does little to even pretend to be provably fair. Each of their games randomly generate a percentage value and then a hash with the value and a nonce is provided, but that does nothing to assure fairness: For the duels the player chooses a side. If the predetermined roll — which an insider would obviously easily know — was below 50, someone with insider knowledge could simply choose the below 50 side, and vice versa. Small betting differences slightly change the balance, but it has no apparent guards against insider abuse, and it’s incredible that anyone trusted these sites.
The pool/jackpot game relies upon a percentage being computed for a game — say 66.666666% — and then as players enter they buy stacked “tickets”, the count depending upon the value of their entries. So player 1 might have tickets 1-100, player 2 tickets 101-150, and player 3 tickets 151-220. The round expires and the 66.6666% ticket is #146, so player 2 wins the pot.
A variety of other CS GO gambling sites1 use the same premise. There is nothing provably fair about it. If an insider knows that a given jackpot win percentage is 86%, it is a trivial exercise to compute exactly how many tickets to “buy” to take the pot, at the right time, with the technical ability to ensure the final entry. It is obvious when to bow out of a given pool.
Some sites have tried to mix this up further, but to a tee each one was easily exploitable by anyone with insider knowledge.
There is nothing provably fair about it.
1 – I had a couple of illustrative examples of extra dubious claims of “provably fair”, including a site that added hand-rigged cryptography that actually made it even less fair for players. Under the scrutiny and bright lights, a lot of these sites seem to have scurried into the dark corners, shutting down and removing themselves entirely from Google Search.