Attorney General Letitia James is taking legal action against Valve for allegedly promoting gambling through loot box systems in its games such as Counter-Strike 2, Team Fortress 2, and Dota 2, as stated in a press release. The lawsuit aims to halt Valve from promoting gambling features permanently, recover any ill-gotten gains, and impose penalties for violating New York laws.
The lawsuit describes Valve’s loot box model—charging for a chance to obtain valuable items based solely on luck—as gambling, which is illegal under New York’s Constitution and Penal Law. Valve has reportedly earned tens of millions by selling loot box keys to New Yorkers and also profited from commissions on the sales of virtual items obtained from these loot boxes. The complaint highlights that these loot boxes are particularly harmful as they attract children and adolescents.
In some Valve games, users can buy keys to open loot boxes, which award randomly-selected virtual items. These items can be sold on the Steam Community Market or third-party sites, with rare items valued at thousands of dollars. However, opening a loot box costs $2.49 plus tax, and users often receive items of lesser value than the key’s cost. The lawsuit also compares the experience of opening loot boxes in Counter-Strike 2 to using a slot machine.
Valve has not yet responded to a request for comment.