Menu

New York Attorney General sues video game maker Valve

New York State’s Attorney General, Letitia James, has filed a lawsuit against video game developer Valve, claiming that the loot box systems in several of its popular games — including Counter-Strike, Team Fortress, and Dota — amount to illegal gambling under state law.

Players spend real money to buy loot box keys

The legal complaint, filed in Manhattan, argues that players spend real money to buy loot box keys that give them a random chance of winning virtual items. Some of these items are hard to obtain, can be resold online, and are seen as having real value. This structure, the lawsuit says, is essentially the same as slot machines or other gambling devices.

Early exposure to gambling

The Attorney General’s office says Valve has profited billions of dollars from selling these loot box keys and encouraging a marketplace where players can trade or sell the digital items they receive. The complaint also emphasizes that these features are especially harmful to children and teenagers, citing research that early exposure to gambling increases the risk of addiction later in life.

James is asking the court to make Valve stop offering loot boxes, pay restitution to affected players, and face fines worth three times the company’s claimed illegal earnings.

Valve, which is based in Bellevue, Washington, did not immediately respond to requests for comment on the lawsui

Source: https://www.reuters.com/legal/government/new-york-sues-video-game-developer-valve-says-its-loot-boxes-are-gambling-2026-02-25/