The State of New York has filed an official lawsuit against Steam developer Valve, alleging that loot boxes in games like Dota 2 promote illegal gambling to children. Valve has evolved into a titan of the gaming industry since its origins as the developer of games like Half-Life and Team Fortress, building one of the biggest online platforms in the world. Steam stands as the largest marketplace for PC games by a wide margin, boasting a staggering library of more than 100,000 games on the storefront. Valve has also continued to develop its own games alongside Steam’s success.
Beyond its role as the owner of Steam, Valve has launched a plethora of popular online games. Dota 2 and Counter-Strike 2 continue to boast strong player counts with thriving competitive scenes, each seeing hundreds of thousands of players logging on daily. Valve is also working on a brand-new IP, the multiplayer shooter Deadlock, currently only available to play through invites 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 is Being Sued Over Loot Boxes
New York Attorney General Letitia James filed a lawsuit against Valve over the company’s use of loot boxes in games. The formal complaint alleges that Valve promotes illegal gambling with its loot boxes, with the boxes said to be marketed towards children. James argues that Valve’s loot boxes constitute “quintessential gambling,” citing high variance in item values while generating significant revenue from the in-game mechanic. The lawsuit is officially seeking restitution for players who have purchased loot boxes in games like Team Fortress 2, while seeking a fine totaling triple the value of Valve’s gains from its loot boxes. Valve has not made an official comment on the lawsuit.
James further attacked Valve’s marketplace model for its loot boxes, referencing both the key system and the implications of Steam’s marketplace. The attorney general cited one unnamed Valve game that featured an interface similar to a slot machine, claiming that the company has earned billions from loot boxes. The Steam marketplace was also a point of focus for Attorney General James, claiming 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 within the gaming industry throughout recent years, with multiple states and regions lobbying against the practice. Brazil signed a law in late 2025 banning the purchase of loot boxes by gamers under 18, following in the footsteps of countries like Belgium and the Netherlands. HoYoverse’s Genshin Impact was similarly hit with a $20 million USD fine by the US Federal Trade Commission in early 2025, connected to the gacha mechanics for acquiring new characters within 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 big victory in another recent legal affair. A Washington judge ruled in favor of Valve in a lawsuit against known “patent troll” Leigh Rothschild and his legal team, regarding a patent focused on cloud-based storage. The lawsuit was first filed by Valve in 2023 after engaging in multiple prior legal battles with Rothschild, brought as a counterclaim after Rothschild had sued the company for patent violation despite a perpetual license to use the patented materials. Valve’s latest legal troubles could hold major implications for the gaming industry as the war against loot boxes rages on.
Source: Reuters
