Ever since they opened up shop I have disliked CS:GO betting sites. The main reason for this is due to the fact that they push negative expected value wagering on underaged individuals. You are forced to bet on a variety of games that do not have a user edge. This include but are not limited to commission coin-flips, roulette, and lottery draws. Today one of the most popular CS:GO betting sites (CSGODiamonds) has revealed that on top of this many Provably Fair betting sites have been giving hash results to streamers in order to keep them making promotional content. Welcome to the world of irresponsible unregulated online gambling. Here is everything you need to know about the CSGO Diamonds scam.
The CSGO Diamonds Scam Confession
At 7:01 AM eastern time CSGO Diamonds tweeted out a TwitLonger from their official Twitter account. This outlined an incident involving exchanges done with a popular streamer in order to keep him producing content that attracted traffic to their site.
For those who have not had a chance to read CSGO Diamond’s confession, I have quoted it below in it’s entirety. In their post, CSGO Diamonds outlines what lead them to decide to start taking advantage of their users.
Hello to all members of the CSGO gaming and betting community. We wanted to touch on a subject that has come up this week in order to dispel any concerns or rumors that may arise.
When we first launched CSGO Diamonds, we contacted Moe looking to sponsor him. This involved him playing on CSGO Diamonds during his stream to generate traffic and build interest. After discussing details for a few days, we agreed that he would get 20% of all profits made in the first month and 10% of all profits the following months. In addition to this, he would be given Diamonds on the site to use while on stream which he could bet but not withdraw. This was in exchange for him streaming. He told us he would be streaming for roughly 110-130 hours a month.
Everything went well for the first six weeks but then we noticed he began streaming less and less. At the two month mark and noticing the decrease in exposure, we approached Moe about it. He said he was busy with real life and dealing with Echo Fox which we sympathised with. He continued on to say, I quote, “If u feel that at the end of May I didn’t pull my own weight u can simply say we’re done or renegotiate or something”. That sounded fair to us so we continued things as they were. Unfortunately for us, nothing changed and his streams were less frequent in comparison to the agreement. Then, he notified us that he was going to be busy with E-League so he would not be able to stream.
We approached him on the 1st of June, roughly 2 weeks ago, ready to either re-negotiate or provide him a severance payment and end our sponsorship with him. This conversation did not go very well and Moe got upset and threatened to ‘expose’ us for something he himself was also involved in. This relates to the twitter post from June 12th.
Allow a moment for us to explain this situation. Since we’re a provably fair site, we are able to check all future rolls just like any other provably fair site. For example, CSGO Double could tell you what the next 100 colours will be. It’s important to note that just because we can see future results doesn’t mean we can change them. If a roll’s result were to ever be manipulated, you would be able to see this when you go to verify the roll (the result of the check would not match what you saw during your roll). In a quick decision, we made a mistake with Moe and decided to tell him some of his future rolls in an effort to make his stream more entertaining on our site. (It’s important to note we did not do this with any other sponsor and, rightly so, have learned from the mistake.)
This happened in both directions, at times we provided him a future roll and other times he would ask us for a roll result while on stream. This is what he is threatening to ‘expose’ us with, although he had a willing part in this too.
He threatened this in efforts to keep the 10% of all profits deal with us. After we saw this, we knew immediately that we did not want anything further to do with the situation so we decided to offer him the severance payment and part ways. He agreed to the payment and to part ways. Following this, we found out that he had been providing false, negative information regarding our site to our sponsors. He has now taken to Twitter, regarding the withdrawal of Diamonds that, as mentioned previously, were never to be withdrawn as part of the original agreement.
In the interest of transparency, we have instead chosen to explain the situation ourselves to you all. We welcome all discussions or questions and apologize for any confusion this may have provided you throughout this situation. However, we want to maintain our integrity and plan to continue our growth in the future. You, the community, are a critical key to our success and have gotten us to this point. In return, we shall continue to give you our best efforts in order to provide you with the best experience we can offer.
CSGO Diamonds describes their initial deal with popular streamer mOe_tv. After the greedy streamer was not satisfied making 20% of the profit from his referred traffic, CSGO Diamonds thought it would be a good idea to compromise their integrity and public trust in order to attract more people to their site. That’s right, they made a negative expected value game even more negative in order to get more people hooked on negative expected value gambling. I hate the world sometimes.
Is this CSGO Diamonds Scam OK?
In their post, CSGO Diamonds try to make it seem like they are doing the right thing by admitting their mistake. It is clear that they were simply trying to get ahead of the story. If there was a chance that they could have kept on going without this getting out, they would have taken that road instead. They deserve no sympathy or credit for admitting their mistakes. When you have a gun to your head you will say anything asked of you, including the truth.
CSGO Diamonds include in their tweet that mOe was not gambling with real money. The diamonds (virtual currency used on their site in order to operate with less-then-no regulations) were not withdrawable. They were just used for show during streams (which quickly lead to the streamer getting bored). While this is fair, the CSGO Diamond scam did take real money away from the customers that played against mOe. If they were really looking to “do right”, refunding every single person that lost money to mOe would be a start. But the greedy CSGO fraud site would never do that.
If betting on negative expected value events was not reason enough not to use CSGO betting sites, then this should surely be it. Anyone who continues to do coin-flips and roulette deserves to lose their money.
CSGO Diamonds Scam: The Big Picture
While CSGO Diamonds ruining their reputation was one of the accomplishments of today’s confession, they did shine a light on a bigger issue. They described how every Provably Fair CSGO betting site has the ability to view future results. You can imagine that the CSGO Diamonds scam is not the only one going on. Every day we hear of new skin betting sites popping up. In what has become such a saturated market, people will do anything to get ahead. I can guarantee that there are other betting sites selling their integrity for air-time on streams.
Unfortunately nothing can be done to stop it except to refrain from giving these sites any business. You cannot make long-term money betting on negative expected value markets. There is plenty of literature on this website that can explain to you how profitable gambling works, and none of it will ever refer to flipping coins or spinning wheels. Spend your time developing a skill in either poker or sportsbetting if you insist on generating money through gambling. It will go along way.