New York is Suing Valve, Claims the Counter-Strike Developer’s Loot Boxes are “Quintessential Gambling”

Feb 25, 2026 at 04:45pm EST
Two animated characters with orange-tinted glasses stand armed next to the text 'Counter Strike 2' on an orange and grey

Valve is facing yet another lawsuit, and it's not about the Steam company's 30% cut on all Steam sales. This time, the lawsuit comes from the state of New York, as the state's general attorney, Letitia James, has filed a lawsuit against Valve, alleging that the company has violated state gambling laws with the loot boxes available games like Counter-Strike.

The news comes from a new report from Reuters, which adds that James calls Valve's loot boxes "quintessential gambling," and also accused the DOTA 2 developer of "threatening to addict children" to gambling.

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"Valve's loot boxes are particularly pernicious because they are popular among children and adolescents," the complaint reads. "Research has shown that children who are introduced to gambling are at a significantly higher risk of developing gambling addictions later in life."

James adds, "Valve has made billions of dollars by letting children and adults alike illegally gamble for the chance to win valuable virtual prizes. These features are addictive, harmful, and illegal, and my office is suing to stop Valve's illegal conduct and protect New Yorkers."

If successful, the state of New York's suit will look to "permanently stop Valve from continuing to promote illegal gambling in its games and to pay disgorgement and fines."

This is not the first lawsuit we've seen get thrown at a major publisher centered around loot boxes and the similarities they have with gambling. Earlier this month, an Austrian court ruled that the loot boxes in EA Sports FC and FC Ultimate Team "do not constitute gambling," while in Brazil, the country's president signed a ban on all loot boxes aimed at users under 18 that is set to go in effect in March 2026.

It'll be a long time before this suit is settled, but it'll be interesting to see if it actually brings about any changes to loot boxes, not just in games like Counter-Strike or EA Sports FC, but across the industry. It probably won't mean the end of loot boxes in games, but it could mean a significant shift in how they operate, hopefully for the better.

About the author: David has been writing about videogames, technology, and culture since 2020, with a focus on reporting daily news across multiple publications, including GameDaily.Biz, GameSkinny, and PlayStation Universe before joining Wccftech in 2025. David started contributing as Canada/US reporter for Wccftech's gaming section in 2025. Besides being up-to-date on the industry's movements, he loves interviewing developers, reviewing games, and writing intricate essays about the symbolism and layered meanings to be found in rich narratives as he's done for publications like GamesIndustry.Biz, LostInCult, and others. Outside of games he loves movies, music, theatre, his hometown, and his family, though not necessarily in that order.

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