New York Attorney General Letitia James has filed a lawsuit against Valve, the parent company of gaming platform Steam. According to a report by the news agency Reuters, the US state has alleged that Valve’s use of promotes illegal gambling and exposes children to addictive behaviour. The complaint, filed in a Manhattan state court this week, claims Valve’s loot boxes amount to allowing players to spend real money for a chance to obtain virtual in-game items.
According to the lawsuit, many of these rewards have low monetary value despite the costs involved, raising concerns that gambling-like mechanics are being introduced to younger users through popular video games such as Counter-Strike, Team Fortress and Dota, Reuters reported.
What New York Attorney General Letitia James said about Valve
As per Reuters, James said Valve generated billions of dollars in revenue through the sale of used to open loot boxes, including in one game where the process resembled a slot machine, with a wheel moving through different items before stopping.
The attorney general said these key sales supported Valve’s business model, which allows players to sell items won through loot boxes on the Steam Community Market and other online marketplaces.
the complaint stated. It also cited the Massachusetts Department of Public Health, noting that children introduced to gambling by age 12 are four times more likely to develop gambling-related problems as adults.
James is seeking restitution for affected players, along with penalties totalling three times Valve’s alleged illegal gains, the report added.
Apart from Valve, loot boxes on other platforms have also faced regulatory scrutiny. In January 2025, the US Federal Trade Commission fined Singapore-based Cognosphere, the publisher of Genshin Impact, $20 million for misleading children and other users about the odds of receiving valuable loot-box rewards.
The action also restricted children under 16 from purchasing loot boxes without parental consent. Cognosphere, operating as HoYoverse, did not admit wrongdoing, the FTC said.
