Valve Under Fire in New York as AG Says Loot Boxes Are Gambling

Loot boxes in video games have once again found themselves in the spotlight after New York authorities initiated a lawsuit against Valve. In a complaint, New York Attorney General Letitia James postulated that the video gaming company’s products are essentially gambling that targets children.

Loot Boxes Remain a Controversial Feature

For context, loot boxes are a form of digital product offered in many popular video games. Loot boxes can sometimes be earned by playing, but almost always can be paid for with real money, too. These digital boxes usually contain a randomized set of digital items, which could vary from cosmetics that change the appearance of the player character or equipment to new playable characters and usable items that alter the gameplay.

Loot boxes’ combination of paid features and random chance has long been criticized by concerned parents and health organizations, who’ve said that such products expose children to gambling harm.

While a few markets here and there have introduced certain restrictions on loot boxes, these features have remained mostly a point of contention without provoking serious changes. This could now change in New York, where the Attorney General herself spoke out against Valve’s loot boxes.

The Complaint Says Valve Offered Gambling

James’ complaint says that Valve’s games, such as Counter-Strike 2, Dota 2, and Team Fortress 2, all of which include loot boxes, have been essentially “illegally promoting gambling.”

The complaint slams Valve’s loot box model, which charges players for a chance to win something of value based on luck alone, saying that it is basically unregulated gambling. The lawsuit accuses the gaming company of generating tens of millions of dollars more from sales than what New Yorkers earned by reselling items on the Steam Community Market and third-party platforms.

At the same time, the AG asserted that the loot boxes, paired with the popularity of Valve’s games, exposed children and adolescents to potential gaming harm. The complaint noted that some of the loot box screens were even designed to resemble a slot machine.

The New York Attorney General is now seeking to stop Valve from offering its loot boxes, force the company to disgorge its “ill-gotten gains,” and pay fines for violating New York’s gaming laws.