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New York Attorney General Sues Valve, Alleging Loot Boxes Are Illegal Gambling

February 27, 2026
in ESports
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New York Lawyer Normal Letitia James has filed a lawsuit in opposition to Valve Company, claiming that Counter-Strike 2, Crew Fortress 2, and Dota 2 promote unlawful playing to minors. 

James alleges the video games entice customers to gamble cash to win uncommon, worthwhile objects. Beneath New York state legislation, this quantities to unlawful playing. 

Avid gamers in New York may very well be affected. Picture Credit score: Valve

New York doesn’t permit on-line casinos, and James claims loot bins within the video games are primarily slot machines or lotteries. 

The lawsuit notes that the majority customers spend extra on digital keys to open loot bins than the worth of the objects they obtain. Nonetheless, the hope of hitting the jackpot and receiving a uncommon, high-value merchandise retains gamers playing. 

“Most individuals, subsequently, buy a key and open a loot field for a similar cause individuals play the lottery or a slot machine—the potential of successful a big prize,” says the criticism. 

Valve Enterprise Mannequin Revolves Round Unlawful Playing

James mentioned, “Valve has made billions of {dollars} by letting youngsters and adults alike illegally gamble for the possibility to win worthwhile digital prizes. These options are addictive, dangerous, and unlawful, and my workplace is suing to cease Valve’s unlawful conduct and defend New Yorkers.”

The lawsuit claims the corporate has intentionally provided its video games without spending a dime whereas devising a enterprise mannequin to revenue from customers’ playing. 

“In search of a brand new strategy to monetize its hottest video games, Valve launched beauty digital objects into its flagship video games,” writes the lawsuit.

Valve first launched this stuff in Crew Fortress in 2011, making them accessible for direct buy on Steam. 

Two years later, the corporate devised a extra profitable strategy to monetize the objects by introducing loot bins, alleges the criticism. This mannequin was quickly launched to CS2 and Dota 2. 

Valve Additionally Blamed For Skins Playing Amongst Youth

Loot bins have been debated closely as a gray space within the online game playing debate. Picture Credit score: Blizzard

A report on skins playing additionally claimed Valve ought to do extra to cease the phenomenon of minors utilizing objects from its video games to gamble on third-party websites. 

One survey respondent acknowledged, “Lots of the video games with tradeable skins are from Valve, so I feel they’ve an enormous half on this being attainable in any respect.”

Valve has prohibited occasion organizers and esports groups from selling third-party skins playing and case opening websites.

The lawsuit claims that though the corporate has taken a public stance in opposition to skins playing websites, it isn’t limiting third-party marketplaces that permit customers to purchase and promote objects gained from loot bins. 

It alleges this encourages extra customers to gamble on successful worthwhile objects, producing extra revenue for Valve. 

The corporate takes a 15% fee on gross sales, which the submitting claims has generated thousands and thousands of {dollars} from New Yorkers. 

Will New York Shut Off Valve?

James mentioned she “seeks to completely cease Valve from selling playing options in its video games, disgorge all ill-gotten good points, and pay fines for violating New York’s legal guidelines.”

Different courts, nonetheless, have been reluctant to categorize loot bins as playing. Final month, the Austrian Supreme Court docket dominated in opposition to a participant who sued EA, alleging its loot bins had been unlawful playing. 

In its judgment, the court docket mentioned “the acquisition means of loot bins can’t be thought-about in isolation from the remainder of the online game for the needs of playing legislation evaluation.” 

As a result of the sport contains components that rely on the participant’s ability, the court docket discovered it isn’t a sport of likelihood and is subsequently not unlawful playing. The participant, subsequently, was not refunded any of the €20,000 ($24,000) he spent on loot bins. 

The lawsuit in New York calls for that the court docket order Valve to pay again customers within the state who’ve spent cash on loot bins. As well as, it needs Valve to pay a high-quality for its unlawful actions and take away loot bins from its video games. 

It’ll now be left to the Supreme Court docket in New York to determine whether or not it agrees with James or takes the same stance to the Austrian courts. 



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Tags: allegingAttorneyBoxesGamblingGeneralillegalLootSuesValveYork
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