New York City officials have filed a lawsuit against Valve over loot boxes in Counter-Strike and Dota 2

New York State Attorney General Letitia James has filed a lawsuit against Valve, accusing them of illegally promoting gambling through loot box mechanics in popular multiplayer titles. The lawsuit, filed in a Manhattan court, concerns the games Counter-Strike 2, Team Fortress 2, and Dota 2, which, according to the watchdog, implement a system that essentially functions as a slot machine.

The official statement from the Attorney General's office emphasizes that the process of opening containers with virtual items completely replicates the mechanics of slot machines: the user pays real money for a key, after which an animated wheel spins and lands on a random prize. The odds of receiving rare items are predetermined by the company itself, effectively turning Valve into a casino operator. The skins and accessories obtained do not affect gameplay, but can be resold on marketplaces for real-world prices reaching millions of dollars—for example, one AK-47 skin sold for over $1 million.

Authorities are particularly concerned about the availability of this mechanic to minors. The lawsuit notes that loot boxes are especially dangerous for children and teenagers, who are willing to spend limited funds to gain status in the gaming community. Research shows that children introduced to gambling are four times more likely to develop gambling addiction in adulthood. The prosecutor's office estimates that Valve has earned billions of dollars from key sales, with New York residents alone spending tens of millions on them.

The prosecutor is demanding a permanent ban on loot boxes in the state, the recovery of all illegal profits from the company, and a fine equal to three times the estimated income from this activity. Valve has not yet commented on the lawsuit.