Valve’s monetisation systems are now facing scrutiny in a US court.
A lawsuit has been filed against Valve Corporation, with New York Attorney General Letitia James accusing the company of illegally promoting gambling through its in-game loot box systems. The complaint, announced on 25 February, 2026 in a press release posted on the New York Attorney General's official website, follows an investigation by the Office of the Attorney General (OAG), which said it found that several of Valve’s titles enable players to pay for a chance at high-value virtual items.
The lawsuit specifically names Counter-Strike 2, Dota 2 and Team Fortress 2, alleging that their loot box mechanics violate New York’s Constitution and Penal Law.
Loot boxes have been a legal grey area for years, with countries experimenting on how to deal with it in different ways. Some, like China and South Korea, force developers to show the odds of getting rare items. In Australia, any loot box content automatically gives a game an M rating, while simulated gambling elements push it to R18+, restricting sales to minors.
According to the press release, the OAG found that Valve’s games “enable gambling by enticing users to pay for the chance to win a rare virtual item of significant monetary value”, arguing that the systems function in a way comparable to betting on a random outcome.
CS2 case openings compared to slot machines in New York lawsuit
In its filing, the OAG states that in Counter-Strike 2 “the process resembles a slot machine, with an animated spinning wheel that eventually rests on a selected item”, directly likening the case-opening animation to casino-style mechanics. It further notes that “the randomly selected virtual items have no in-game functionality but can be sold online for money”, pointing to the real-world value attached to certain skins.
One such item reportedly sold for more than US$1 million in 2024, underscoring the scale of the skins economy surrounding Counter-Strike.
The broader market for CS skins has grown into a multi-billion-dollar ecosystem in recent years, attracting not only players but also traders and speculators, where market for Counter-Strike skins had surpassed US$4.3 billion according to reports in March 2025 (thanks, IGN).
The lawsuit alleges that Valve has “made billions of dollars luring its users, many of whom are teenagers or younger, to engage in gambling in the hopes of winning expensive virtual items that they can cash in on”, claiming the system incentivises repeated purchases in pursuit of rare drops.
In a statement, James said, “Illegal gambling can be harmful and lead to serious addiction problems, especially for our young people,” adding that Valve has “made billions of dollars by letting children and adults alike illegally gamble for the chance to win valuable virtual prizes.” She described the features as “addictive, harmful, and illegal,” and said her office is seeking to halt what it characterises as unlawful conduct, and to protect New Yorkers.
The complaint also outlines how players can monetise items. Through the Steam Community Market, users can sell skins for platform credit to buy other games, hardware, or digital items. Alternatively, they can link accounts to third-party marketplaces, where skins may be sold directly for cash. The OAG states it found that Valve “facilitates and even assists” these third-party platforms.
The Attorney General is seeking to permanently bar Valve from promoting gambling features in its games, require the company to disgorge profits allegedly earned through the practice, and impose financial penalties under New York law.
As of time of writing, Valve has not released a statement regarding the lawsuit.
