New York Sues Valve Over Loot Boxes, Calls Them Illegal Gambling

From PC Mag: Valve, the maker of Steam and many of PC gaming’s most popular titles, is being sued by New York for its use of loot boxes. New York Attorney General Letitia James filed the lawsuit, claiming that loot box systems enable gambling habits and are particularly harmful for younger people.

The lawsuit specifically cites three games: Counter-Strike 2, Dota 2, and Team Fortress 2. It wants the video game developer to stop using loot boxes in its titles and to pay fines for previously promoting 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, acting as a randomized treasure chest that may 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 stores, indicating they have real-world value. It points to reports of a virtual gun skin within Counter-Strike 2 that sold for over $1 million in 2024.

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