New York Attorney General Sues Valve Over Loot Boxes

In the United States, New York Attorney General Letitia James on February 25 filed a lawsuit against the video game developer Valve in Manhattan court.

Loot boxes in CS2, Dota 2, and Team Fortress 2 are described in the lawsuit as a form of gambling, as players spend real money to purchase keys for a chance to win random in-game items.

Loot Boxes as a Form of Gambling

In one of the games, the process of opening loot boxes visually resembles a slot machine, and there are no age restrictions, making them accessible to children and teenagers.

Valve allows users to trade the items they win through the Steam Community Market or sell them on third-party platforms for real money.

Mechanics and Value of Items

Virtual items have cosmetic value, such as skins for characters or weapons. Rare items can sell for thousands of dollars, with one reported to have sold for over $1 million.

Older Counter-Strike items have attracted investors, and the skin market exceeded $4.3 billion by March 2025.

Impact on Users and Risks for Children

Attorney General James emphasized that loot boxes are dangerous for children, as young players with limited funds may start gambling in hopes of obtaining a rare item.

Research shows that children exposed to gambling are four times more likely to develop gambling problems later in life.

Security Risks and Fraud

The high value of rare items makes Steam accounts attractive to hackers. Valve has received hundreds of thousands of reports from users about account hacks or scams involving virtual items.

Goals of the Lawsuit and Prosecutor’s Actions

The Attorney General seeks to stop the promotion of gambling features in games, recover ill-gotten gains, and impose fines for violating New York state laws.

The lawsuit is part of James’ broader efforts to protect children online and prevent illegal gambling, including campaigns against Meta, TikTok, and online casinos.

Authorities Involved in the Investigation

The case is being handled by Assistant Attorneys General Marc Montgomery and Alexandra Hiatt under the supervision of senior staff and the Bureau of Internet and Technology, which is part of New York’s Division of Economic Justice.