New York sues 'Counter-Strike' game developer saying 'loot boxes' promote gambling

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New York’s lawyer wide is suing video crippled developer Valve, claiming the “loot boxes” recovered successful Counter-Strike and different fashionable video crippled franchises illegally beforehand gambling

ByPHILIP MARCELO Associated Press

February 25, 2026, 6:38 PM

NEW YORK -- New York's lawyer wide has sued video crippled developer Valve, claiming the “loot boxes” recovered successful Counter-Strike and different fashionable video crippled franchises illegally beforehand gambling.

State Attorney General Letitia James said successful a suit filed Wednesday successful New York authorities tribunal that games specified arsenic Counter-Strike 2, Team Fortress 2 and Dota 2 illegally complaint users for the accidental to triumph uncommon items held successful the virtual containers.

In Counter-Strike, the process adjacent resembles a slot machine, with an animated spinning instrumentality that yet rests connected a selected item, James’ bureau said.

“Valve has made billions of dollars by letting children and adults alike illegally gamble for the accidental to triumph invaluable virtual prizes,” James said successful a statement. “These features are addictive, harmful, and illegal.”

Messages seeking remark were near Wednesday for the Bellevue, Washington-based company.

“Loot box” items are mostly cosmetic, specified arsenic a chapeau for a player’s quality oregon an creator tegument for weapons. They usually don't service immoderate captious relation successful the games, but James' bureau said the items tin inactive beryllium sold online for important sums.

Some of the rarest items tin spell for thousands of dollars online, according to James' office. One item, an AK-47 Counter-Strike skin, precocious sold for much than $1 million.

James' suit says Valve is violating New York’s constitution by promoting gambling successful its games. It wants the institution to halt the signifier and wage restitution and damages to users, arsenic good arsenic a good worthy 3 times the magnitude of its profits from the features.

The lawyer wide argues that probe has recovered children introduced to gambling are 4 times much apt to make a gambling occupation aboriginal successful beingness than those who are not.

“Loot boxes, similar different forms of gambling, tin pb to addiction and effect successful existent harm,” the suit reads. “But Valve’s loot boxes are peculiarly pernicious due to the fact that they are fashionable among children and adolescents, who are lured into opening loot boxes by the imaginable of winning costly virtual items that convey presumption successful the gaming world.”

James' bureau said request for “loot box” prizes has drawn involvement not conscionable from online speculators and investors that person helped values soar, but besides thieves targeting third-party, online marketplaces wherever the virtual items tin beryllium sold for cash.

Valve facilitates those third-party marketplaces, arsenic good arsenic operating its own, the Steam Community Market, wherever players tin merchantability their items and usage the proceeds to bargain different video games, gaming hardware oregon different virtual items.

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