Valve is Being Sued by New York State Over Loot Boxes

The state of New York is suing Valve, claiming its loot box system constitutes gambling.

New York Attorney General Letitia James’ complaint asserts that loot boxes in Steam games, such as Counter-Strike 2 and DOTA 2, facilitate gambling by encouraging players to pay for a chance to win rare items, similar to how a slot machine operates. Gambling is illegal in New York, outside of certain exceptions.

“Illegal gambling can be harmful and lead to serious addiction problems, especially for our young people,” said Attorney General James. “Valve has made billions of dollars by letting children and adults alike illegally gamble for the chance to win valuable virtual prizes. These features are addictive, harmful, and illegal, and my office is suing to stop Valve’s illegal conduct and protect New Yorkers.”

Valve is New York’s Attorney General Latest Gambling Target

Ahead of the Super Bowl in early February, AG James took aim at the recent rise of prediction markets such as Kalshi, warning that they lack the same protections as regulated gambling venues.

Now, this lawsuit warns of the slippery slope from something like loot boxes to problematic behaviors in young individuals. The lawsuit cites a “well-known gaming publication” and claims that there are countless cases of kids using their parents’ credit cards to be sucked into the world of microtransactions and loot boxes, some as young as 11.

It stated that this lawsuit aims to permanently stop Valve from promoting gambling features in its games, to require Valve to disgorgue all ill-gotten gains, and to impose fines for violating New York’s laws.

You can read the full complaint at this link. Insider Gaming will continue to bring you the latest on this matter as more information is made available.

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