Banks confirms FaZe Clan funded CSGO team via skin gambling website - Dexerto
CS:GO

Banks confirms FaZe Clan funded CSGO team via skin gambling website

Published: 11/May/2020 21:11 Updated: 11/May/2020 22:41

by Alan Bernal

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FaZe Clan owner Ricky Banks revealed on May 10 that the organization had created a skin gambling site and used its lucrative success to initially fund the club’s CSGO team, as originally reported by Esports Talk.

Wanting to expand into Counter-Strike, but without the cash to properly fund the team they had their sights on, Banks enrolled FaZe Clan into a project with other collaborators with the goal of creating an alternative form of CSGO skin gambling.

“It was kind of like a grey area, because it’s a skin and there’s no actual value to it, and the government puts absolutely no value to it,” Banks said on an episode of the ‘BADNWZ’ podcast. “We came up with this idea, with these kids, for a different way to do it. We branded it the right way.”

Dreamhack
FaZe Clan jumped into CSGO in 2016 after buying the G2.Kinguin lineup.

Banks found his cash cow to get FaZe the funding they needed to buy their CSGO team in 2016. He claimed that the gambling site was their way to “finesse” the major purchase as quickly as possible to get the most value out of the transaction.

After finding their reliable income from CSGO skin gambling, FaZe were raking in about $200,000 a day from their novel business model.

According to the exec, this was all done by the books. Banks and his partners flew to Antigua in the Caribbeans, where they faced less stringent regulations for creating a gambling site, allowing them to lawfully navigate their operation.

“We were making $200,000 a day,” Banks explained. “We set it up on Antigua, it’s an island in the Caribbean where running a gambling website is completely legal if you have the permits to do it.”

Banks paid “the guy who runs the island” $100,000 to acquire the documentation they needed to be “the only ones who were doing it legitimate” before skin gambling was regulated.

FaZe maintained the skin gambling site for a few months before shutting it down. The offshore company had raked in enough cash for the org to successfully fund their CSGO venture.

ELEAGUE
Since joining CSGO esports, FaZe have signed various top-tier talents throughout many iterations of their lineup.

Valve has since been strict around their CSGO cosmetics in response to the cascading governance in the skin gambling industry.

It was around this time in the mid-2010s where worldwide governments were taking aim at skin gambling. In 2015, these casino-style gambling sites for skins generated nearly $3 billion, according to findings from gaming research firm Eilers and Krejcik Gaming and Narus Advisors.

CS:GO

BLAST’s director of operations on maintaining integrity with online CSGO

Published: 24/Nov/2020 15:23 Updated: 24/Nov/2020 15:33

by Adam Fitch

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“This time last year our rulebook and our whole setup were based on LAN events,” BLAST’s director of operations and production Andrew Haworth told Dexerto. “We hadn’t really done a huge amount of work on how that would be replicated in an online world.”

Earlier this year, with the global health situation emerging, governments all around the world were forced to reduce the feasibility of hosting events, and thus, they were moved online — halfway through a tournament, in some cases.

Prior to the restrictions, tournament organizer BLAST managed to host their first big competition of the year in February, impressing many and unknowingly hosting what would be one of the only prominent offline events in the 2020 Counter-Strike calendar. They didn’t have the same privilege later in the year, however, as limitations had yet to be permanently relaxed in many locations. Nonetheless, they went on with their plans to host the BLAST Premier Fall Series, albeit online.

Another layer of absurdity was added as a factor of hosting an event, and that was the revelation of a spectating bug that spanned multiple years. With the Esports Integrity Commission — a body devised to maintain the integrity of competitive gaming — issuing bans to dozens of coaches, integrity questions were more prominent than ever during an online era, no less, where it’s harder to monitor the activity of teams and their coaches.

BLAST Premier Fall Series 1
BLAST
Commentators Scrawny and launders arrived at the production location early to accommodate local restrictions.

Haworth’s background working on major music festivals and the Olympics Games means he’s no stranger to crafting contingency plans to put in place in case of a problem arising. Prior to hosting the Fall Series, they went through sessions of scenario testing with key department leads to devise numerous methods of still getting the job done.

Considering BLAST have deployed everything at their disposal to maintain competitive integrity within their events, Dexerto spoke with Haworth to see how they adapted their processes to move to a remote production while monitoring the gameplay itself both in and out of the server.

Going back to esports’ roots

“We were fairly lucky in the timing of the outbreak, we just finished our Spring Series in February and didn’t have another live event till the end of May,” he said. “Other tournament organizers didn’t and were thrown into that halfway through a show. We had a bit of time, purely by luck, to have a look at what we need to do for our Spring Showdown and our Spring Final.”

While esports, like most other sports, is fundamentally an entertainment product, the need for competitive integrity is essential. Fans tune in to watch the best players in the world face off against each other, and that’s no different during an era of online competition.

“If the fans don’t have faith in what we’re putting on if our broadcasters and sponsors don’t have faith in what we’re putting on, and the teams ultimately lose faith in it, then none of us can stand behind it proudly,” Haworth said. “So competitive integrity is in integral to what we do, none of us are arrogant enough to think that we’re perfect in that.

“There may be things that we’re doing now that we’ll review and determine haven’t worked quite as well or are not effective. Some of the things that we have done we want to ensure, while maintaining competitive integrity at all times, doesn’t affect the performance of play. We don’t want to be taking up computer performance for the matches because that isn’t going to gain the right tone with anybody.”

BLAST Premier Fall Series 2
BLAST
The venue had no players in sight, with only production staff and broadcast talent being present.

With a change in circumstance comes a need to change the parameters in which events are run, and that filters all the way down to the gameplay itself. BLAST saw the need to adapt their guidelines early in the year, when LAN events no longer seemed possible, so all of the teams were on the same page.

“The rulebook gets issued at the start of every season, we generally review it and update it after every event,” Haworth said. “We did less of that last year — I think we only made one or two slight revisions from Spring Series into Spring Showdown because the former was very much for a LAN. We also have our competitive integrity policy, which is broadly drawn out of the rulebook and is a short, sharp summary to articulate to what we do. That’s on our website. We’ve worked with experienced tournament officials that have worked with other tournament organizers and in other settings, it’s important to us that they can see elsewhere what has worked, and equally what hasn’t worked, so we can pick up best practices.”

From bad to worse

All partners of ESIC — including the likes of ESL and DreamHack — vow to enforce rulings decided upon by the commission, and that was no different for BLAST. The spectating exploit utilized by at least 37 coaches rocked the CS:GO community and certainly begged the question as to what tournament organizers are doing to ensure fair play is had at all times.

Moving online adds another layer of difficulty to constantly and accurately monitoring the matches played, especially considering tournament officials can’t be present to see how teams are operating with their own two eyes. BLAST believes they’ve reached the pinnacle of monitoring at this precise moment.

“Some of the measures we put in place aren’t perfect but they’re the best available solution we’ve found so far,” Haworth told Dexerto. “There are methods that we’re developing and evolving. We are confident that the measures we have in place currently are giving the desired result in not allowing anybody to manipulate the system or take advantage of it.

“From a coaching bug point of view, the player cams that we’ve put in place have been a really useful feature. That’s something that we looked at, to start with, as a broadcast feature that had some great context and depth. It grew into something that we now utilize to ensure we can see what players are doing.

“We’ve worked with players on camera angles, we have down-the-line shots, coaches have cameras on them and we listen to TeamSpeak for both a broadcast feature and in terms of integrity,” he continued. “The MOss system is far from perfect but it allows us to know what’s open on someone’s computer, there’s a report sent to us post-match with that information.

Moving forward in the face of adversity

Despite having what they believe is a solid solution to both playing online and safeguarding the integrity of the tournament, it would be understandable if a tournament organizer decided to postpone an event due to the recent exploit revelation and subsequent disciplinary rulings. Haworth ensured Dexerto, however, that that wasn’t an eventuality BLAST considered.

BLAST Spike Nations
BLAST
BLAST have undergone plenty of growth in 2020 so far despite the difficulties, expanding into new titles like Valorant and Dota 2.

“We’ve never really moved our date around. We put our 21 days in the international calendar [that’s shared by all CS:GO tournament organizers] in April this year to try and provide full transparency,” he said. “We worked on this straight after the Spring Final, there were a couple of bits that we thought we could include like the coach cams but there were also a couple of things that weren’t ready for the Fall Series. We played around with them but wasn’t sure if it would cause performance issues on players’ PCs so we didn’t want to risk it.”

There’s not the only difficulty in providing a fair and stable environment for the players, BLAST have plenty of staff that are needed to execute a full production. Having staff at home using personal internet lines isn’t the most confidence-inducing prospect, but the company has managed to execute a means of working that allows for maximum efficiency given the circumstances.

While online play, and the copious amount of events that are taking place, may not be ideal, esports has proven to be resilient in the face of extreme and unpredictable challenge. The Fall Series was revered by industry professionals and Counter-Strike fans alike, but it’s clear that BLAST are not resting on their laurels leading up to the next phase of the competition.