All bets must have an item of value to offer as a bet. On winning a game, the value of such stake increases and the winner enjoys the money made from it. Traditional gambling has undergone numerous changes in terms of legislation and judicial decisions. India has outdated central legislation and since gambling is a subject of State Lists, few of the states have taken up the initiative to draft rules about gambling. Online gambling with virtual items having a monetary value has recently been highly appraised. This article analyses 'skins', which are cosmetic virtual in-game items that can enhance and customize a player’s avatar or a weapon, as an item of value to place the bet. Further, the author has analyzed skins betting on esports tournaments and games of chance and how it is important to bifurcate the legitimacy of these two categories when betting skins. The whole analysis is limited to India's existing legislations and the newly updated notifications which have given recognition to esports and online gaming or online gambling culture.