New York state attorney general Letitia James announced on X and Bluesky today that the state of New York is opening a lawsuit against Valve for violating the state's gambling laws through its games.
In the brief post, James says Valve has "made billions of dollars by letting children and adults illegally gamble for the chance to win valuable virtual prizes. These features are addictive and harmful."
"An investigation by the Office of the Attorney General (OAG) found that Valve’s video games, including Counter-Strike 2, Team Fortress 2, and Dota 2, enable gambling by enticing users to pay for the chance to win a rare virtual item of significant monetary value. In Valve’s most popular game, the process resembles a slot machine, with an animated spinning wheel that eventually rests on a selected item.
Valve, a video game developer, has made billions of dollars by letting children and adults illegally gamble for the chance to win valuable virtual prizes. These features are addictive and harmful. That's why I'm suing to stop Valve’s unlawful conduct and protect New Yorkers.
— @newyorkstateag.bsky.social (@newyorkstateag.bsky.social.bsky.social) 2026-02-25T21:43:31.572Z
The claim goes on to describe aspects of the Steam marketplace that many readers are likely already familiar with: the odds set by Valve, the casino-like presentation of loot box openings, and the lucrative third-party markets that've sprung up around Counter-Strike 2 skins and knives. In 2023, a single Counter-Strike gun skin sold for $400,000.
"Valve’s loot box model can be especially harmful to children," the claim reads. "Attorney General James asserts that young users with limited funds can be enticed to start gambling through loot boxes in the hopes of obtaining a virtual item that they believe will enhance their status in the games’ virtual worlds."
James also goes on a tangent about links between gun violence and videogames.
"In addition, although this case is about illegal gambling, it is important to note that Valve’s promotion of games that glorify violence and guns helps fuel the dangerous epidemic of gun violence, particularly among young gamers who can become numbed to grave violence before their brains are fully developed."
The attorney general aims to "stop Valve from promoting gambling features in its games, disgorge all ill-gotten gains, and pay fines for violating New York’s laws."
This is hardly the first time the Steam steward has faced a legal showdown over its enriching loot box practices. In 2022, Valve defeated the last of a string of gambling lawsuits that sprung up around 2016. That particular lawsuit got tied up in the distinction between third-party grey market sites that functioned like literal online casinos, and Valve's own system of key purchasing/box opening. The New York complaint, while mentioning third-party sources, argues that Valve's own systems constitute gambling.
We've reached out to Valve for comment and will update the story if one arrives.
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