The New York State Attorney General Letitia James has announced her intention to sue Valve over alleged illegal gambling. They claim that the developer and owner of Steam allows “children and adults” to do so via lootboxes in Counter Strike 2 and Dota 2.

In a statement released alongside the 52-page legal filing, James stated: “Illegal gambling can be harmful and lead to serious addiction problems, especially for our young people. 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.”

This lawsuit will be handled by assistant attorney generals Marc Montgomery and Alexandra Hiatt, senior enforcement counsel Jordan Adler, the Bureau of Internet and Technology’s bureau chief Kim Berger, as well as deputy bureau chief Clark Russell.

The statement also touches on aspects of these loot box environments, including the substantial increase of value it’s seen over the years. It reads: “The virtual items awarded when a user opens a “loot box” are cosmetic, like a hat for a player’s character or artistic skins for a player’s weapons. Like slot machines, the prizes won from loot boxes are determined randomly in accordance with odds set by the casino, which in this case is Valve. Valve intentionally makes some items far harder to win than others, making the rare items more valuable. Despite having no in-game functionality, these virtual items can be extremely valuable, with the rarest items selling for thousands of dollars online.

“The value of Counter-Strike’s skins rose significantly in recent years, attracting speculators and investors who viewed these virtual items as potentially lucrative digital assets. In March 2025, it was reported that the market for Counter-Strike skins had surpassed $4.3 billion.”

According to the filing, the New York State is requesting the following in terms of relief from this lawsuit:

• Permanently enjoining Defendant from violating the Constitution and laws of the state of New York, including Executive Law § 63(12) and Penal Law §§ 225.05 and 225.10
• Directing Defendant to produce an accounting of monies lost by consumers in New York as a result of Defendant’s illegal acts
• Directing Defendant to make full restitution to consumers and pay damages caused, directly or indirectly, by the illegal acts complained of herein plus applicable pre-judgment interest
• Directing Defendant to disgorge all monies resulting from the illegal practices alleged herein
• Directing Defendant to pay a fine of three times the amount of its gain from the illegal practices alleged herein, pursuant to Penal Law § 80.10
• Directing such other equitable relief as may be necessary to redress Defendant’s violations of New York law; g. Awarding Plaintiff costs of $2,000 pursuant to CPLR § 8303(a)(6)
• Granting such other and further relief as the Court deems just and proper.

As of writing, Valve has yet to respond to this lawsuit.