New York has brought a lawsuit against Valve, accusing the developer and platform holder of “illegally promoting gambling through video games popular with children and teenagers.” The suit seeks to bring down Valve’s ecosystem around loot boxes, which the office equates to illegal (and unregulated) gambling.
Per a press release (thank you, Reuters), the suit was brought after an investigation finding “Valve’s video games, including Counter-Strike 2, Team Fortress 2, and Dota 2, enable gambling by enticing users to pay for the chance to win a rare virtual item of significant monetary value.”
The suit accuses the entire loot box enterprise of being “quintessential gambling, prohibited under New York’s Constitution and Penal Law.” It makes mention of the mechanics of loot boxes themselves, their implications on the Steam Community Market, in third party marketplaces, and beyond.
In the presser, attorney general Leticia James said “Illegal gambling can be harmful and lead to serious addiction problems, especially for our young people… Valve has made billions of dollars by letting children and adults alike illegally gamble for the chance to win valuable virtual prizes. These features are addictive, harmful, and illegal, and my office is suing to stop Valve’s illegal conduct and protect New Yorkers.”
Today’s suit is far from the first time loot boxes have come under scrutiny and legal action. Last year, Genshin Impact developer Cognosphere was fined $20 million by the FTC for loot box sales to children under 16. In 2024, the Australian government mandated games with loot boxes carry an “M” rating, not long after European Parliament voted to regulate in-game loot boxes.
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