New York State Sues Video Game Developer Valve Over Gambling Concerns

Written by :

Aaron Goldstein

Published on :

26 February, 2026

New York State's Attorney General Letitia James has sued the video game developer Valve claiming that the company promotes 'quintessential gambling'.

James added that children can become addicted by the games through "loot boxes".

Loot boxes are in-game virtual items that players can buy (or earn) which contain randomized rewards that are only revealed upon opening the box.

Bellevue, Washington-based Valve is the developer of the software distribution platform Steam and some of the most popular franchises including Half-Life, Counter-Strike, Portal, Day of Defeat, Team Fortress, Left 4 Dead, and Dota.

In the complaint filed on Wednesday, James also claims that these games are violating the state's constitution and penal law, with valuable items often hard to win and many items worth pennies.

James said Valve generated billions of dollars of revenue by selling "keys" to open loot boxes, including in one game where the process resembled a slot machine as a wheel whirred through various items before stopping.

The attorney general said key sales advanced Valve's unusual business model of letting players sell items they won on its virtual marketplace, Steam Community Market, and on other marketplaces.

"Valve’s loot boxes are particularly pernicious because they are popular among children and adolescents," according to the complaint.

Children introduced to gambling by age 12 are four times more likely to become problem gamblers as adults, the complaint added, citing the Massachusetts Department of Public Health.

James is seeking restitution for players, plus a fine of three times Valve's alleged illegal gains.