Computers & internet

NY Sues Video Game Developer Valve Over Loot Boxes

Are loot boxes harmless optional purchases or is Valve running an illegal gambling operation?

Published FEB 28

NY Sues Video Game Developer Valve Over Loot Boxes

Story

Above: New York Attorney General Letitia James at the Albany Capital Center in New York on Feb. 15. Image credit: Lori Van Buren/Albany Times Union/Getty Images

The Facts

New York Attorney General Letitia James filed a lawsuit against video game developer Valve on Wednesday, alleging that loot boxes in games including Counter-Strike 2, Team Fortress 2 and Dota 2 "promote illegal gambling."
The Washington Times
Cybernews
New York State Attorney General
The lawsuit seeks to "permanently stop Valve" from promoting the alleged illegal gambling, require the company to pay restitution and damages to users, and impose a fine worth three times the profits from the loot box features.
Financial Times
Independent
Reuters
The lawsuit claims Valve charges users for keys to open loot boxes containing virtual items determined randomly by odds set by Valve. In Counter-Strike, the opening process resembles a slot machine with an animated spinning wheel.
Fox16
CBS News
Loot box items are generally cosmetic, such as character hats or weapon skins, and do not affect gameplay. But rare items can be sold for significant sums, with a Counter-Strike AK-47 skin reportedly selling for over $1 million in 2024.
Breitbart
Independent
The lawsuit alleges that "nearly every user" who opens a loot box receives a common item worth less than the key's cost. Approximately 96% of Counter-Strike loot boxes contain items valued below the box cost based on resale prices.
Engadget
Financial Times
Valve operates the Steam Community Market and allegedly facilitates third-party marketplaces where players can sell virtual items. Funds from such sales can be used to buy video games, gaming hardware or other virtual items.
GamesIndustry.biz
The Washington Times

Sources Split

LEFT

CENTER

RIGHT

ESTAB
CRIT

CENTER

PRO
ESTAB

The Spin

Narrative A

Suing Valve over loot boxes is a pathetic joke that threatens gaming freedom. These are optional purchases in free games, no different from trading card packs that have existed for decades. This frivolous lawsuit wastes taxpayer resources attacking a beloved company instead of addressing real problems.

Epidemic on X

Narrative B

Valve operates an illegal gambling operation worth billions by letting kids gamble for virtual prizes through loot boxes. The Steam Marketplace transforms these random purchases into real gambling by allowing resale for actual value. This addictive system exploits players and violates gambling laws.