The State of New York has officially waged legal war against one biggest video game developers, Valve. The state filed a massive lawsuit against the company for encouraging gambling through its loot box-RNG mechanics.
Attorney General Letitia James alleged that these mechanics in games like ‘Counter-Strike 2,’ ‘Dota 2,’ and ‘Team Fortress 2‘ constitute “quintessential gambling” specifically marketed toward children. If Valve loses the lawsuit, it could change how the Steam marketplace works and how in-game microtransactions work across its different games.
Attorney General Targets The Financial Structure Of The Steam Community Market
Attorney General James pointed out and targeted the alleged foul tactics Valve uses to sell “keys” for in-game crates. She cited a specific, unnamed Valve title featuring an interface similar to a slot machine, claiming the company generated billions from these “predatory” mechanics.
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The lawsuit put its crosshairs on the popular Steam Community Market. Usually, in games, players’ items such as cosmetics, skins, etc., are limited to their account and can’t be traded outside. However, thanks to the Steam Community Market, players can resell their cases and skins. Players must have seen ‘CS2‘s knives selling for thousands of dollars thanks to this system. Attorney General James argued that Steam Community Market encourages players to gamble to pull out rare items, which they can resell at a higher value.
Valve May Face Billions Of Dollars In Fine
The state is pushing to slap a fine of almost triple the amount Valve has made through this system to refund players. It seems like the lawsuit is not just limited to shutting down the Steam Community Market. Valve has not yet issued any official statement as of now.
Taking down such systems has become a trend now. In late 2025, Brazil passed a law banning loot boxes for players under 18. ‘Genshin Impact‘s publisher HoyoVerse was slapped with a $20 million USD fine by the FTC for similar mechanics for acquiring new characters. Many European countries, such as the Netherlands and Belgium, have already cracked down on these practices and banned them.
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This isn’t Valve’s only time fighting a legal battle in recent times. Recently, a Washington judge ruled in favor of Valve in a long-running battle against “patent troll” Leigh Rothschild. However, the New York lawsuit is a big issue for the studio as it cracks down on their core revenue stream for their games.
If New York wins this lawsuit, other giants like EA and Activision will be forced to completely strip randomized purchases from their games in the United States next.
