NY AG: Valve's loot boxes can get kids hooked on gambling

Engadget

by Mariella Moon

February 26, 2026

AI-Generated Deep Dive Summary

New York Attorney General Letitia James has filed a lawsuit against Valve, accusing the company of promoting illegal gambling through its popular video games, including *Counter-Strike 2*, *Team Fortress 2*, and *Dota 2*. The lawsuit focuses on Valve’s loot box system, which requires players to pay for the chance to win rare in-game items. According to the AG’s investigation, this model is “quintessential gambling” and poses a significant risk of addiction, particularly among children and teenagers who are frequent players of these games. The suit argues that exposing young users to gambling at an early age increases their likelihood of developing gambling addictions later in life. Valve’s loot box system allows players to purchase virtual chests or keys to open them, with the chance of receiving valuable items like rare skins or weapons. These items can be sold on third-party marketplaces for real money, creating a lucrative market for in-game assets. For instance, a *Counter-Strike 2* AK-47 skin recently sold for over $1 million, highlighting the massive scale of this virtual economy. The lawsuit also alleges that Valve facilitates these transactions by enabling third-party platforms to sell game items for cash, despite claiming otherwise in previous statements. The New York AG’s office is seeking legal action against Valve, including a halt to its alleged illegal activities, forfeiture of earnings from such practices, and a fine three times the amount earned from these operations. The lawsuit underscores the potential harm of loot boxes to vulnerable populations and raises broader concerns about the intersection of gaming, gambling laws, and consumer protection. This case could set a significant legal precedent for how virtual currencies and in-game purchases are regulated in the tech industry. The implications of this lawsuit extend beyond gaming, as it challenges the boundaries between entertainment and gambling. For tech enthusiasts and游戏玩家, the outcome could influence future policies on loot boxes, virtual economies, and未成年人保护措施. The case also highlights the growing importance of ethical considerations in game design and the responsibility of companies to protect young users from potential harm.

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Originally published on Engadget on 2/26/2026