Valve’s Loot Boxes Are Gambling And Illegal, Says New York In New Lawsuit
Kotaku
by Zack ZwiezenFebruary 25, 2026
AI-Generated Deep Dive Summary
New York’s Attorney General has filed a lawsuit against gaming giant Valve, alleging that the loot box system in popular games like *Counter-Strike 2*, *Team Fortress 2*, and *Dota 2* constitutes illegal gambling. The suit argues that these mechanisms, which offer randomized rewards for players, violate state consumer protection laws by targeting underage individuals and failing to disclose the odds of winning. This move marks a significant step in the ongoing debate over loot boxes, which have long been criticized for their resemblance to gambling.
Loot boxes are virtual currency systems where players purchase in-game items or chances to win specific rewards through microtransactions. While they are widespread across gaming platforms, critics argue that they exploit players’ psychological desire for rare or desirable items. In this case, the New York lawsuit specifically targets Valve’s Steam platform, which hosts these games and is widely used by millions of players worldwide. The Attorney General claims that Valve has created a system that preys on children and young adults, making it both deceptive and illegal under state gambling laws.
The legal battle over loot boxes has been heating up globally, with several countries and regions implementing stricter regulations to protect minors from their potential harm. New York’s lawsuit is part of a broader effort to hold game developers accountable for practices that resemble gambling without proper oversight. By naming specific games like *Counter-Strike 2* and *Dota 2*, the suit highlights how these mechanisms are deeply ingrained in some of the most popular titles in gaming culture. This could set a precedent for other states or countries to follow, potentially reshaping the way loot boxes are regulated.
For gamers and game developers alike, this case raises important questions about the future of loot boxes in gaming. If New York succeeds in its lawsuit, it could lead to stricter regulations on microtransactions and random reward systems across the industry. Players who have spent money on loot boxes may also be eligible for refunds under the suit, though this has yet to be determined. The outcome of this legal battle will likely influence how game companies design their monetization strategies moving
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Originally published on Kotaku on 2/25/2026