New York files lawsuit against Valve for 'gambling' loot boxes

The New York Attorney General, Letitia James, has initiated legal action against Valve for “promoting illegal gambling” with the loot box mechanisms found in games such as Counter-Strike 2, Team Fortress 2, and Dota 2, based on a press statement. 

The attorney general wants to “put an end to Valve's promotion of gambling features in its games, return all illegal earnings, and pay penalties for breaking New York’s legislation.”

“This loot box strategy that Valve has implemented — where someone pays for a chance to win valuable items purely on luck — classifies as gambling, which New York’s Constitution and Penal Law outlaw,” the lawsuit details. 

Valve has reportedly earned “tens of millions of dollars” by selling loot box keys to “thousands” of residents in New York and has “amassed millions of dollars more in fees from New Yorkers who traded virtual items obtained from loot boxes.” 

The complaint also points out that these loot boxes are “particularly harmful” as they appeal strongly to children and teenagers.

Participants can buy keys to unlock loot boxes in some of Valve's games, receiving randomly assigned virtual rewards. 

Users have the option to sell these rewards on the Steam Community Market or through third-party platforms; some rare items can fetch “thousands of dollars,” says the lawsuit. 

However, to access the loot boxes, users must pay Valve $2.49 plus tax, often resulting in receiving items “worth less than the price of the key”. 

Additionally, the lawsuit describes Valve’s loot box opening in Counter-Strike 2 as resembling a slot machine experience.