Valve disputes New York lawsuit claiming loot boxes are illegal gambling

Valve says it will challenge New York lawsuit claiming loot boxes in its games violate state gambling laws

Valve has responded to a lawsuit filed by the New York Attorney General claiming that loot box systems in several of the company’s games violate state gambling laws.

The case centres on mystery boxes such as crates, cases and chests that appear in titles including Counter-Strike 2, Dota 2 and Team Fortress 2. These systems allow players to open digital containers to receive random in-game items.

In a statement addressed to players on March 11, Valve said it disagrees with the allegations and plans to challenge the claims in court.

The company said it had been communicating with the New York Attorney General’s office since early 2023 about how the systems operate before the lawsuit was filed.

Valve argued that the loot box systems used in its games are comparable to physical collectable products that contain random items.

The company cited examples such as baseball card packs, Pokémon cards, Magic: The Gathering cards and Labubu blind boxes.

“We shared with the NYAG that these types of boxes in our games are widely used, not just in video games but in the tangible world as well, where generations have grown up opening baseball card packs and blind boxes and bags, and then trading and selling the items they receive,” Valve said.

The company also emphasised that the items available through these systems are cosmetic and do not affect gameplay.

“Players don’t have to open mystery boxes to play Valve games. In fact, most of you don’t open any boxes at all and just play the games. Because the items in the boxes are purely cosmetic, there is no disadvantage to a player not spending money,” the statement added.

Valve also rejected claims that the systems promote gambling and said it has taken steps against third-party gambling sites. According to the company, more than one million Steam accounts linked to gambling, fraud or theft involving in-game items have been locked.

The company added that it will comply with any future legislation introduced by New York lawmakers but argued that the Attorney General’s demands go beyond existing state law. “Ultimately, a court will decide whose position, ours or NYAG’s, is correct,” Valve said.