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New York Sues Valve Over Loot Box Gambling Claims

Ars Technica •
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New York state has filed a lawsuit against Valve alleging that randomized loot boxes in games like Counter-Strike 2, Team Fortress 2, and Dota 2 amount to unregulated gambling. The suit claims Valve's system lets users 'pay for the chance to win a rare virtual item of significant monetary value' through randomized in-game purchases.

While many randomized video game loot boxes have drawn regulatory attention, New York's lawsuit specifically targets Valve's marketplace system. The suit notes that while most loot boxes contain skins worth only a few cents, the rarest items can sell for thousands of dollars through Steam's marketplace and third-party sites. Valve's system allegedly fits the statutory definition of gambling by 'charging an individual for a chance to win something of value based on luck alone.'

The lawsuit also accuses Valve of enabling third-party skin gambling sites that use Steam inventories as virtual chips. While Valve has 'sporadically enforced' rules against such sites, the suit alleges the company has not acted against marketplaces that permit resale of virtual items for real cash. State Attorney General Letitia James said the gambling enabled by Valve's system can 'lead to serious addiction problems, especially for our young people.'