New York sues Valve, alleging its loot boxes are ‘perfect gambling’

New York Attorney General Letitia James is suing Valve for “unlawfully promoting gambling” through loot box systems it designed for video games such as Counter Strike 2, Castle Team 2and Dota 2, According to a press release. The attorney general seeks to “permanently prohibit Valve from promoting gambling features in its games, disgorge all ill-gotten gains, and pay fines for violating New York laws.”

“This loot box model developed by Valve — which charges an individual the chance to win something of value based on luck alone — is intrinsic gambling, prohibited by the New York Constitution and Penal Code,” The suit says. Valve made “tens of millions of dollars” selling loot box keys to “thousands” of New Yorkers and “made millions of additional dollars in commissions from New Yorkers who sold virtual items obtained from loot boxes.” The company’s loot boxes are also considered “particularly harmful” because they are popular with children and teens, according to the complaint.

Users can purchase keys to open loot boxes in some Valve games and receive randomly selected virtual items as rewards. If they want, users can then sell those rewards in the Steam Community Market and on third-party marketplaces; The rare items can be worth “thousands of dollars,” the lawsuit says. However, these systems require users to pay Valve $2.49 plus tax to open loot boxes, and users often receive items that are “worth less than what the user spent on the key.” The lawsuit also points to Valve’s experience with loot box opening Counter Strike 2 It’s similar to that of a slot machine.

Valve did not immediately respond to a request for comment.