The state of New York has filed an official lawsuit against the Steam developer Valveclaims that loot boxes in games like Dota 2 promote illegal gambling to children. Valve has developed into a titan in the gaming industry since its origins as a developer of games such as Half-life and Team fortressbuilding one of the largest online platforms in the world. Steam stands as the largest marketplace for PC games by a wide margin, with a staggering library of more than 100,000 games on display. Valve has also continued to develop its own games alongside Steam's success.
In addition to its role as owner of Steam, Valve has launched a plethora of popular online games. Dota 2 and Counter-Strike 2 continue to boast a strong player base with thriving competitive scenes, each of which sees hundreds of thousands of players logging in daily. Valve is also working on a brand new IP, multiplayer shooter Deadlockcurrently only available to play through invitations from other players who already have access to the game. Now Valve has found itself facing a new lawsuit related to loot boxes in its games.
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Valve sued over loot boxes
New York Attorney General Letitia James filed a lawsuit against Valve regarding the company's use of loot boxes in games. The formal complaint alleges that Valve promotes illegal gaming with its loot boxes, where the boxes are said to be marketed towards children. James argues that Valve's loot boxes constitute “quintessential gambling”, citing high variances in item values while generating significant revenue from the in-game mechanic. The lawsuit seeks official compensation for players who have purchased loot boxes in games that Team Fortress 2while seeking a fine totaling three times the value of Valve's profits from its loot boxes. Valve has not provided any official comment on the lawsuit.
James further attacked Valve's marketplace model for its loot boxes, citing both the key system and the implications of Steam's marketplace. The attorney general cited an unnamed Valve game that had an interface similar to a slot machine, and claimed the company has made billions from loot boxes. The Steam marketplace was also a focus of Justice James, who argued that it further promoted the resale market on the Steam Community Market, where players can sell their in-game items won through loot boxes.
Loot boxes have been a hot-button issue in the gaming industry in recent years, with several states and regions lobbying against the practice. Brazil signed a law in late 2025 banning the purchase of loot boxes by players under the age of 18, following in the footsteps of countries such as Belgium and the Netherlands. HoYoverse's Genshin Impact was similarly hit with a US$20 million fine by the US Federal Trade Commission in early 2025, linked to the gacha mechanic for acquiring new characters in the game. EA has also previously faced fines related to its use of loot boxes.
The loot box lawsuit comes on the heels of Valve scoring a major victory in another recent legal deal. A judge in Washington ruled in favor of Valve in a lawsuit against the famous “patent troll” Leigh Rothschild and his legal team, regarding a patent focused on cloud-based storage. The suit was first brought by Valve in 2023 after participating in several previous legal battles with Rothschild, brought as a counterclaim after Rothschild had sued the company for patent infringement despite a perpetual license to use the patented material. Valve's latest legal woes could have major implications for the gaming industry as the war against loot boxes rages on.
Source: Reuters
