The Norwegian Gaming Authority—the official regulating body of lotteries, gambling, and horse racing for the country—has issued a statement regarding online skin gambling. Its take is simple: don’t do it.

[perfectpullquote align=”right” cite=”” link=”” color=”” class=”” size=””]The act of offering online skin gambling is illegal in Norway.[/perfectpullquote]

“Skins can normally not be exchanged for cash, but it is possible to take the skins out of the game and to other markets for buying and selling. There are separate online casinos where you can bet and win skins, and in such cases, skins are a virtual currency that can be used for gambling. We have seen several examples of Norwegian children and young people who have spent thousands of money on this activity…. Stopping illegal betting has always been a priority at the NGA, especially when games are aimed at children and young people. We will therefore examine the issues surrounding gambling with skins, and consider sanctions against operators who offer this in Norway.”

The NGA also explains how the act of offering online skin gambling is illegal in the country: “A gaming site that allows bet and pays out prizes in skins is in our view an online casino, and in Norway, only Norwegian Tipping is allowed to offer online casino services.”

This isn’t the first case of government regulation in esports. Last year, the UK Gambling Commission charged two YouTubers with offering illegal online gambling services and targeting youth. They pled guilty in February. And game developers have been targets too—last year, Valve was ordered by the Washington State Gambling Commission to stop all gambling-related skin transfers done through its Steam platform. To its credit, Valve had tried to crack down on illegal skin gambling sites earlier, to mixed results—and challenged the WSGC to name which laws it was violating.

Not all regulation is bad, however. In Las Vegas, Fifth Street Gaming has led a charge to create an esports hotspot—and has worked with the Nevada Gaming Policy Committee and the Nevada Gaming Control Board to establish the Nevada Esports Alliance. The organization now looks to grow on earlier initiatives like an esports venue, a tournament series, and legal wagering. The NGCB has also partnered with the Esports Integrity Coalition to share data on esports gambling and match fixing.