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New York AG Letitia James Sues Video Game Giant Valve over "Loot Boxes," Calling Them "Quintessential Gambling"

New York's attorney general accuses Valve of enabling illegal gambling through loot boxes that addict children, with the company earning nearly $1 billion from Counter-Strike keys in 2023.

  • On Wednesday, Attorney General Letitia James filed a lawsuit against Valve in Manhattan, accusing the company of enabling gambling through loot boxes in Counter-Strike 2, Team Fortress 2, and Dota 2.
  • Attorney General James argues the system works by charging users for digital keys to open loot boxes and making rare items harder to win, while research shows children and adolescents exposed to gambling are four times more likely to develop problems.
  • Court filings highlight market data showing Valve earned nearly $1 billion from Counter-Strike keys in 2023, with skins selling for over $1,000,000 on Steam Community Market and third-party marketplaces.
  • James's office is asking for restitution, damages and a treble fine, and it seeks permanent injunctions to stop Valve's practices while requesting comment from the Bellevue, Washington-based company.
  • After 2025 market shifts that wiped out over a billion dollars, demand for loot-box prizes drew speculators and thieves targeting third-party marketplaces, worsening CS2 crash impacts.
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New York sues Counter-Strike game developer saying 'loot boxes' promote gambling

New York’s attorney general is suing video game developer Valve, claiming the “loot boxes” found in Counter-Strike and other popular video game franchises illegally promote gambling.

·United States
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New York Attorney General Letitia James has filed a lawsuit against Valve, the company behind the PC gaming platform Steam, alleging that the company facilitates illegal gambling through its games.

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Breitbart broke the news in United States on Wednesday, February 25, 2026.
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