New York sues Valve over Steam's loot boxes as 'illegal gambling'
New York Attorney General Letitia James has taken legal action against Valve, the company behind the Steam gaming platform. The lawsuit targets the use of loot boxes, claiming they encourage illegal gambling among young players. James is pushing for a ban on these mechanics and seeking financial penalties against the company.
Loot boxes are virtual containers that players can buy with real money or in-game currency. They provide random in-game items, such as skins or weapons, without guaranteeing value. James argues that this system qualifies as 'gambling in the truest sense,' violating New York's laws.
The lawsuit highlights the scale of the issue, noting that the market for Counter-Strike skins alone surpassed $4.3 billion last year. Research from Massachusetts' Department of Public Health supports concerns about early exposure to gambling. Children introduced to such mechanics by age 12 are four times more likely to develop gambling addictions later in life.
This case follows a broader crackdown on similar practices. Over the past two years, at least 12 US lawsuits have targeted companies like Epic Games, Blizzard, Electronic Arts, and Roblox for comparable mechanics. Regulators, including the FTC, have also taken action against three firms, one linked to Roblox.
James has a history of challenging gambling-related operations. She previously ordered the shutdown of 26 online casinos in New York and filed lawsuits against Meta and TikTok for other consumer protection issues.
The lawsuit demands that Valve remove loot boxes from its games and pay financial penalties. If successful, the case could set a precedent for stricter regulation of in-game gambling mechanics. The outcome may also influence ongoing legal battles against other major gaming companies.
