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New York Sues Valve, Alleging Loot-Box Gambling in Counter-Strike, Dota 2, and Team Fortress 2

The filing frames loot boxes as illegal gambling that exposes children to harm.

Overview

  • Attorney General Letitia James filed the state-court complaint in Manhattan, alleging Valve’s loot boxes violate New York gambling laws in Counter-Strike 2, Team Fortress 2, and Dota 2.
  • James calls the system “quintessential gambling” and seeks a permanent injunction, restitution to players, disgorgement, and a fine equal to three times Valve’s alleged gains.
  • The complaint details case-and-key purchases and slot-style opening animations with near‑miss visuals that prosecutors say encourage repeated spending.
  • The filing argues Valve profits from both key sales and Steam Community Market fees, citing an investigator who sold a skin, used the wallet funds to buy a Steam Deck, then resold the device for cash.
  • Reports highlight a massive skins economy—Counter-Strike items were estimated near $4.3 billion last year, with rare skins selling for over $1 million—while Valve has not yet commented.