Valve Faces Second Lawsuit Over Loot Boxes

Consumer class-action suit alleges Valve's loot box system is "carefully engineered to extract money" through "casino-style psychological tactics"

Published on Mar. 9, 2026

Got story updates? Submit your updates here. ›

Less than two weeks after the state of New York sued Valve over its loot box systems in games like Counter-Strike 2, Dota 2, and Team Fortress 2, a consumer class-action lawsuit has been filed making similar allegations. The lawsuit claims Valve's loot box mechanics constitute illegal gambling under Washington state law and that the company deliberately designed the systems to exploit players, including children, through deceptive tactics.

Why it matters

This case represents the latest legal challenge to the controversial practice of loot boxes in video games, which have been accused of being a form of gambling that preys on players, especially minors. If successful, the lawsuit could force Valve to significantly change or even eliminate loot boxes from its games, setting a precedent that could impact the wider gaming industry.

The details

The lawsuit alleges that Valve's loot box systems, which allow players to pay real money for a chance to receive random virtual items of varying value, constitute illegal gambling under Washington state law. It claims the process of unlocking loot boxes is deliberately designed to mimic slot machines, with images of possible items scrolling quickly before landing on the player's 'prize.' The suit also alleges Valve has fostered a secondary market for trading these virtual items, further enabling gambling-like behavior.

  • The lawsuit was filed less than two weeks after the state of New York sued Valve over its loot box practices.
  • Valve's Counter-Strike 2, Dota 2, and Team Fortress 2 have featured loot box systems since 2013, 2012, and 2012 respectively.

The players

Valve

An American video game company and digital distribution platform that owns and operates the popular digital distribution platform Steam.

Steve Berman

The founder and managing partner at law firm Hagens Berman, which filed the consumer class-action lawsuit against Valve.

Daniel J. McGinn

A lawyer unaffiliated with the New York case who published an analysis of the legal challenges facing Valve over its loot box practices.

Got photos? Submit your photos here. ›

What they’re saying

“We believe Valve deliberately engineered its gambling platform and profited enormously from it. Consumers played these games for entertainment, unaware that Valve had allegedly already stacked the odds against them. We intend to hold Valve accountable and put money back in the pockets of consumers.”

— Steve Berman, Founder and Managing Partner, Hagens Berman (Press Release)

“What sets the New York case apart from prior litigation is the [New York] AG's argument that the virtual items won from Valve's loot boxes are genuinely valuable—not just subjectively meaningful to gamers, but convertible to real money in a publicly visible and recognizable manner.”

— Daniel J. McGinn, Lawyer (Analysis)

What’s next

The judge in the case will decide whether to allow the class-action lawsuit to proceed.

The takeaway

This case highlights the ongoing legal and regulatory scrutiny facing the video game industry's use of loot boxes, which critics argue constitute a form of gambling that exploits players, especially minors. The outcome could set an important precedent for how loot boxes are treated under the law.