New York is suing Valve, claiming that their in-game ‘loot boxes’ lure children into gambling

Tužba: A model that represents the essence of gambling

The lawsuit emphasizes that Valve’s “loot boxes” are “particularly harmful” because the mentioned games are extremely popular among children and teenagers. The model in which he playsč having to pay and open a mysterious chest for the chance to win valuable virtual items is described as “quintessential gambling”. The lawsuit refers to research that shows that people who are introduced to gambling at an early age are at a significantly higher risk of developing addiction later in life, and it is also recalled that gambling in the state of New York is mostly illegal.

Players have to buy both chests and keys to open them, and Valve reportedly made billions of dollars just from selling Counter-Strike keys. The lawsuit states that the company earned tens of millions of dollars in fees from the sale of virtual items on its Steam Community Market. In addition to being able to sell items on Steam for funds credited to their virtual wallet, players can also sell them on third-party marketplaces for real money.

Valve claims it has no connection to real money markets

According to an investigation by Attorney General James’ office, Valve not only tolerates, but also and makes third-party marketplaces easier and faster. Although Engadget has reached out to Valve for comment, a response has yet to be received. However, the company has previously denied any association with third-party websites that allow the sale of items from their games for real money. In response to an inquiry from the Danish Gambling Authority, Valve explained that these websites use fake user accounts to sell and receive items on Steam in exchange for cash.

“Such behavior is a violation of our terms of service,” Valve said at the time.

Huge market and multi-million requests

The lawsuit also points out the existence of a huge market for “skins” in the Counter-Strike game and references a Bloomberg article that reported that the value of that market is greater than exceeded 4.3 billion dollars. As an example of selling in-game items for real money, the sale of an AK-47 “skin” for Counter-Strike 2 in 2024 for a whopping million dollars is cited. The state attorney general’s office is asking the court to order Valve to stop violating New York law, to forfeit the money it allegedly earned through illegal activities, and to pay a fine in the amount of three times the amount of illegally earned earnings.