Valve, maker of Steam and many popular PC gaming titles, is being sued by New York for using loot boxes. New York Attorney General Letitia James filed suit, claiming that the loot box system enables gambling habits and is particularly harmful to young people.
The lawsuit specifically references three games: Counter-Strike 2, Dota 2, and Team Fortress 2. It wants video game developers to stop using loot boxes in their titles and to pay fines for first advertising them.
A press release from Attorney General James notes that Counter-Strike 2’s loot box system resembles a slot machine, featuring a spinning wheel that reveals a virtual item. Loot boxes are common in online titles, serving as random treasure chests that can provide valuable in-game items.
It explains that valuable items found in loot boxes can be sold on Valve’s Steam Community Market and other third-party shops, indicating that they have real-world value. This alludes to reports of a virtual gun skin within Counter-Strike 2 that sold for over $1 million in 2024.
However, gamers are less likely to find a valuable item, and the lawsuit alleges that Valve intentionally makes certain items more difficult to win than others.
“Illegal gambling can be harmful and lead to serious addiction problems, especially for our youth,” said Attorney General James. “Valve has made billions of dollars by allowing children and adults to gamble illegally for a chance to win valuable virtual prizes.”
“These features are addictive, harmful and illegal, and my office is suing to stop Valve’s illegal practices and protect New Yorkers.”
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Valve has yet to respond to the lawsuit, and it’s unclear what the developer’s next steps will be.
This isn’t the first time we’ve seen controversy surrounding loot boxes in video games. The Federal Trade Commission fined the publisher of Ganesh Impact in January 2025 for marketing rewards to children.
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