The Attorney General of New York, Letitia James, has declared her plan to take legal action against Valve, citing alleged illegal gambling activities. The accusations stem from the presence of loot boxes in games such as Counter-Strike 2 and Dota 2, which are said to enable both children and adults to engage in gambling behaviors.

In a statement accompanying the 52-page legal complaint, James remarked, “Illegal gambling poses serious risks and can lead to significant addiction issues, particularly among youth. Valve has profited immensely by allowing both minors and adults to gamble unlawfully for opportunities to win valuable virtual rewards. These features are not only addictive and harmful but also illegal. My office will take action to halt Valve’s unlawful behavior and safeguard the residents of New York.”

The case will be managed by Assistant Attorneys General Marc Montgomery and Alexandra Hiatt, along with Senior Enforcement Counsel Jordan Adler, Bureau Chief Kim Berger from the Bureau of Internet and Technology, and Deputy Bureau Chief Clark Russell.

The statement elaborates on the loot box system, noting its increasing financial implications over time. It explains that “the virtual items gained from opening a loot box are often purely cosmetic, such as character hats or weapon skins. Similar to slot machines, the outcomes of loot boxes are determined randomly based on their odds, which are set by Valve. The company intentionally makes certain items much more difficult to obtain, enhancing the perceived value of rare items. Despite lacking any gameplay advantages, these digital items can hold significant worth, with some of the rarest being sold for thousands of dollars online.”

The filing also highlighted that the value of skins in Counter-Strike has skyrocketed recently, attracting attention from investors and speculators who view these virtual goods as promising digital assets. Reports from March 2025 indicated that the market for Counter-Strike skins had surpassed $4.3 billion.

In terms of relief sought through this lawsuit, New York State has outlined several requests:

– A permanent injunction against Valve to prevent violations of New York State’s laws, including Executive Law § 63(12) and Penal Law §§ 225.05 and 225.10.
– An order for Valve to provide an accounting of consumer losses in New York due to the alleged illegal activities.
– Restitution to consumers along with damages incurred as a result of the suspected illegal practices, plus any applicable pre-judgment interest.
– The return of all profits obtained through the alleged illegal practices.
– A fine equivalent to three times the profit obtained from these activities, as mandated by Penal Law § 80.10.
– Additional equitable relief necessary to address Valve’s violations of New York law, including $2,000 in costs as per CPLR § 8303(a)(6).
– Any other relief deemed appropriate by the Court.

As of now, Valve has not issued a response to the lawsuit.