New York Sues Valve, Claims Loot Boxes Are Gambling

New York Attorney General Letitia James has filed a lawsuit against Valve Corporation, alleging the company is “illegally promoting gambling” through its loot box systems. These systems are present in popular games like Counter-Strike 2, Team Fortress 2, and Dota 2.

Allegations of Gambling Practices

The lawsuit aims to permanently prevent Valve from incorporating gambling features into its games. It demands that the company return profits from these practices and pay fines for violating New York laws.

According to the complaint, Valve’s loot box model entitles players to pay for a chance at winning valuable in-game items based solely on luck. The lawsuit states, “This loot box model that Valve has developed… is quintessential gambling, prohibited under New York’s Constitution and Penal Law.”

Financial Implications

The lawsuit highlights that Valve has generated tens of millions of dollars selling loot box keys to thousands of residents in New York. Additionally, the company earns further profits from commissions on virtual items sold by players who obtained them from loot boxes.

Many of these transactions involve children and adolescents, making the issue more concerning. Users can purchase keys for $2.49 plus tax to unlock loot boxes in Valve games, receiving random virtual items as a result.

• Users can sell rewards on the Steam Community Market and third-party marketplaces.
• Some rarer items can fetch “thousands of dollars.”
• Many users often receive items worth less than the cost of the key.

Comparison to Casino Gaming

The lawsuit suggests that the loot box opening experience in Counter-Strike 2 mirrors that of a slot machine, stressing the potential gambling implications for players. Valve has not responded to requests for comment regarding the lawsuit.