Valve Sued For "Promoting Illegal Gambling" By New York Attorney General

Valve's loot boxes are coming under fire in a new lawsuit from New York Attorney General Letitia James. The AG's office is alleging that loot boxes in Valve's games--including Counter-Strike 2, Team Fortress 2, and Dota 2--violate New York's gambling laws and potentially harm children.

In Valve's games, players can use real money to buy loot boxes, which allow them to potentially win a virtual item that may have real monetary value because they can be resold on the Steam Community Market. The lawsuit contends that Valve has made billions by encouraging players of all ages--including teenagers and younger gamers--to keep purchasing loot boxes in the name of winning rare and valuable items. According to James's office, the goal of the lawsuit is to permanently prevent Valve from promoting its "illegal gambling" in games and to fine the company for violating state laws.

"Illegal gambling can be harmful and lead to serious addiction problems, especially for our young people," said James in a statement. "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."