New York sues Valve for 'letting children and adults illegally gamble' with loot boxes
PC Gamer
by Morgan Park February 25, 2026
AI-Generated Deep Dive Summary
New York State Attorney General Letitia James has filed a lawsuit against game developer Valve, alleging that its popular games like Counter-Strike 2, Team Fortress 2, and Dota 2 enable illegal gambling through loot box systems. The suit claims that Valve has profited billions by exploiting features that resemble slot machines, where players pay to open virtual items with monetary value, some of which can be sold for thousands of dollars on third-party markets. These practices are particularly harmful to children, as they can become addicted to the gambling-like mechanics and spend money in hopes of winning valuable virtual prizes.
The lawsuit specifically targets Valve’s loot box model, where the odds of obtaining rare items are predetermined, creating a casino-like experience within its games. This system, according to the complaint, violates New York’s gambling laws by allowing minors and adults alike to engage in illegal gambling activities. The attorney general also criticized Valve for glorifying violence in its games, linking it to broader societal issues like gun violence, particularly among young players.
Valve has faced similar legal challenges before but successfully defended against previous lawsuits by distinguishing between its systems and third-party grey-market platforms that functioned as online casinos. However, this new complaint argues that Valve’s own loot box system directly constitutes gambling under state law. The lawsuit seeks to stop these practices, recover ill-gotten gains, and impose fines for violating New York’s laws.
This case highlights the ongoing debate over loot boxes in gaming, which have been criticized for their addictive potential and targeting of vulnerable populations. If successful, the lawsuit could set a significant legal precedent, potentially influencing how game developers handle virtual currency systems and gambling mechanics in the future. For readers interested in gaming law, consumer protection, and the impact of games on society, this case underscores the importance of regulating digital gaming practices to protect players and prevent harm.
Verticals
gamingpc
Originally published on PC Gamer on 2/25/2026