NEW YORK (AP) 鈥 New York’s attorney general has sued video game developer Valve, claiming the 鈥渓oot boxes鈥 found in Counter-Strike and other popular video game franchises illegally promote gambling.
State Attorney General Letitia James said in a in New York state court that games such as Counter-Strike 2, Team Fortress 2 and Dota 2 illegally charge users for the chance to win rare items held in the virtual containers.
In Counter-Strike, the process even resembles a slot machine, with an animated spinning wheel that eventually rests on a selected item, James鈥 office said.
鈥淰alve has made billions of dollars by letting children and adults alike illegally gamble for the chance to win valuable virtual prizes,鈥 James said in a statement. 鈥淭hese features are addictive, harmful, and illegal.鈥
Messages seeking comment were left Wednesday for the Bellevue, Washington-based company.
鈥淟oot box鈥 items are generally cosmetic, such as a hat for a player鈥檚 character or an artistic skin for weapons. They usually don’t serve any vital function in the games, but James’ office said the items can still be sold online for significant sums.
Some of the rarest items can go for thousands of dollars online, according to James’ office. One item, an AK-47 Counter-Strike skin, recently sold for more than $1 million.
James’ suit says Valve is violating New York鈥檚 constitution by promoting gambling in its games. It wants the company to stop the practice and pay restitution and damages to users, as well as a fine worth three times the amount of its profits from the features.
The attorney general argues that research has found children introduced to gambling are four times more likely to develop a gambling problem later in life than those who are not.
鈥淟oot boxes, like other forms of gambling, can lead to addiction and result in real harm,鈥 the suit reads. 鈥淏ut Valve鈥檚 loot boxes are particularly pernicious because they are popular among children and adolescents, who are lured into opening loot boxes by the prospect of winning expensive virtual items that convey status in the gaming world.鈥
James’ office said demand for 鈥渓oot box鈥 prizes has drawn interest not just from online speculators and investors that have helped values soar, but also thieves targeting third-party, online marketplaces where the virtual items can be sold for cash.
Valve facilitates those third-party marketplaces, as well as operating its own, the Steam Community Market, where players can sell their items and use the proceeds to buy other video games, gaming hardware or other virtual items.
Copyright © 2026 The Associated Press. All rights reserved. This material may not be published, broadcast, written or redistributed.