Valve sued over alleged illegal gambling in Counter-Strike 2
26 Feb 2026

New York Attorney General Letitia James has sued game developer Valve, alleging that the company illegally promotes gambling through its loot box systems.

The lawsuit targets popular games such as Counter-Strike 2, Team Fortress 2, and Dota 2.

The attorney general aims to permanently stop Valve from promoting these gambling features in its games and seeks fines for violating New York's laws.

Valve made millions of dollars selling loot box keys
Legal argument

The lawsuit argues that Valve's loot box model, which charges players for a chance to win valuable items based on luck, is "quintessential gambling."

This practice is prohibited under New York's Constitution and Penal Law.

The complaint also notes that Valve has made tens of millions of dollars selling loot box keys to thousands of New Yorkers and earned millions more in commissions from virtual items sold by these players.

Lawsuit claims loot boxes appeal to children and adolescents
Target audience

The lawsuit also highlights that Valve's loot boxes are especially harmful as they appeal to children and adolescents.

In some of its games, players can buy keys to unlock these loot boxes and receive randomly selected virtual items as rewards.

These items can then be sold on the Steam Community Market or third-party marketplaces for real money, with rarer items potentially worth thousands of dollars.

Counter-Strike 2's loot boxes are similar to slot machines
Gambling comparison

The lawsuit also points out that Valve's loot box system in Counter-Strike 2 is similar to a slot machine.

Players have to pay $2.49 plus tax to unlock these loot boxes and often get items worth less than what they paid for the key.

This, the lawsuit argues, further reinforces its claim that Valve is promoting gambling through these systems.

Potential ripple effects on the gaming industry
Company reaction

Valve has yet to respond to the lawsuit. If successful, this case could have major implications for the gaming industry, especially in terms of loot box mechanics and their legality.

The outcome may also prompt other states to consider similar legal action against game developers using similar systems in their games.