New York Attorney General files lawsuit against Steam operator Valve, calling gacha 'a classic example of gambling'
New York Attorney General Letitia James has filed a lawsuit against Valve, the company behind the PC gaming platform Steam, alleging that the company facilitates illegal gambling through its games.
Attorney General James Sues Game Developer for Promoting Illegal Gambling Through Video Games
New York sues Valve, alleging its loot boxes are 'quintessential gambling' | The Verge
https://www.theverge.com/games/884978/valve-lawsuit-loot-boxes-new-york-attorney-general-lawsuit
On February 25, 2026, local time, Attorney General James filed a lawsuit against Valve for 'facilitating illegal gambling through games popular with children and young adults.'
According to an investigation by the New York State Attorney General's Office, Valve games such as Counter-Strike 2 , Team Fortress 2 , and Dota 2 enable children to gamble by incorporating so-called 'loot box' features that 'require users to pay money in exchange for the chance to win rare digital items of monetary value.'
Valve's most popular games feature gacha (gacha) mechanics similar to slot machines, and digital items that can be purchased in-game with cash are sold online for real money, even though they have no special in-game effect and only change the appearance of the game.
Counter-Strike 2 weapon skins have been rising in value in recent years, with an AK-47 skin selling for over $1 million in June 2024. It's reported that the market for Counter-Strike 2 skins is worth more than $4.3 billion as of March 2025.
In his lawsuit, Attorney General James alleged that Valve 'earned billions of dollars by luring pre-teen users into gambling and allowing them to win and redeem high-value digital items.' He also sought a permanent order to prevent Valve from continuing to encourage illegal gambling in its games, as well as to repay the profits and pay fines.
'Illegal gambling is harmful and can lead to serious addiction, especially for young people,' Attorney General James said. 'Valve has made billions of dollars by allowing children and adults alike to gamble illegally for the chance to win valuable digital items. These features are addictive, harmful, and illegal. My office will bring this lawsuit to stop Valve's illegal conduct and protect the people of New York.'
Valve's Steam platform allows users to buy and sell digital items through its
'Young gamers may be tempted to begin gambling through gacha, which allows them to acquire digital items to boost Valve's status in games,' Attorney General James said. Research has shown that children who are exposed to gambling are four times more likely to later develop a gambling addiction than those who are not.
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