Valve pushes back against lawsuits claiming loot boxes violate gambling laws
Valve is pushing back against accusations that the loot boxes used in its games amount to illegal gambling, as the company faces mounting lawsuits and regulatory scrutiny over the system.
In a statement posted to the Steam support website, the game publisher said it strongly disagrees with claims made by New York authorities and other critics. Valve argues that the random item boxes found in some of its games are closer to buying collectible products than participating in gambling.
“We don’t believe that they do [violate New York gambling laws], and were disappointed to see the NYAG make that claim after working to educate them about our virtual items and mystery boxes since they first reached out to us in early 2023.”
The company also states that items from these boxes are cosmetic only. According to Valve, players do not gain competitive advantages by purchasing them, meaning they are optional visual upgrades rather than gameplay tools.
Valve does not cooperate with gambling sites. To date we’ve locked over one million Steam accounts that were being misused by third parties in connection with gambling, fraud, and theft. We’ve also shipped features (like trade reversal and trade cooldown) to discourage gambling sites’ ability to operate and protect Steam users from fraud. And we forbid any gambling-related business to participate in or sponsor tournaments for our games.
Valve Corporation statement
Valve says it has also tried to curb gambling tied to its ecosystem. The company noted that it has blocked accounts connected to third-party gambling websites and added systems meant to reduce fraud in item trading. Measures such as trade cooldowns and the ability to reverse certain transactions were introduced to limit abuse. Valve said more than one million Steam accounts have been locked because of links to gambling activity, fraud, or stolen items.
Legal challenges focus on Counter-Strike case
Despite those defenses, Valve is now confronting a growing number of legal challenges questioning how its loot box systems work.
One federal class-action lawsuit claims the mechanics resemble casino gambling. The complaint argues that players spend real money for a randomized outcome that can carry significant real-world value.
Much of the case centers on the system used in Counter-Strike 2. Players can earn sealed weapon cases during gameplay, but opening them requires purchasing a digital key that typically costs about $2.49. Inside each case is a randomly selected cosmetic weapon skin, and some rare versions can become highly valuable.
Critics also point to the way the opening sequence is presented. When a case is unlocked, the game shows a row of potential rewards scrolling across the screen before landing on the final item. Plaintiffs say the visual design resembles a slot machine and is intended to encourage repeated purchases.
The financial scale of the feature is another issue raised in court filings. Reports referenced in the lawsuit suggest Counter-Strike players opened enough cases in a single month to generate more than $74 million in revenue.
New York officials are pursuing a separate case. Attorney General Letitia James filed a lawsuit in Manhattan state court alleging that Valve’s sale of keys for randomized rewards violates the state’s gambling laws.
Authorities and researchers have also highlighted the marketplaces surrounding these items. Skins can be traded or sold through the Steam Community Market and external trading platforms, where extremely rare cosmetics sometimes reach extraordinary prices. In one widely cited example, a Counter-Strike skin reportedly sold for more than $1 million.
Featured image: Valve Corporation via Steam
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