New York AG sues Valve over loot boxes in CS2, TF2, and Dota 2
New York Attorney General Letitia James has filed a lawsuit against Valve, arguing that loot boxes in Counter-Strike 2, Team Fortress 2, and Dota 2 illegally encourage gambling, including among minors.
According to the AG’s press release, the Office of the Attorney General investigated Valve’s loot box systems and filed the suit on February 26. The complaint claims Valve has made “billions of dollars” by pushing a model that leads users, “many of whom are teenagers or younger,” into gambling-like behavior for a shot at valuable virtual items.
The lawsuit seeks to permanently stop Valve from “promoting illegal gambling” in its games, and it also asks for disgorgement and fines. New York’s Constitution and Penal Law prohibit gambling with limited exceptions, and the filing argues Valve’s loot box setup fits the state’s definition of gambling and does not qualify for those exceptions.
The suit calls out Counter-Strike 2 specifically, saying the loot box opening process “resembles a slot machine,” and that the presentation is similar to techniques used by casino games to get people to spend money chasing something valuable.
Loot boxes are still a legal and regulatory mess worldwide, and this case lands in the middle of that. Different countries have gone different directions recently, including an Austrian Supreme Court ruling last month that FIFA loot boxes weren’t gambling, and Brazil banning loot box sales to minors as part of broader online safety rules.
Popular Youtuber Coffeezilla had a great video on lootboxes, but more specifically gambling on Counter-Strike:
