Valve Sued Over Alleged Loot Box Gambling in Steam Market

Class-action lawsuit claims Valve's loot box system constitutes illegal gambling under Washington state law.

Published on Mar. 10, 2026

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Valve, the company behind the popular digital game distribution platform Steam, is facing a new class-action lawsuit over its in-game loot box system. The lawsuit, filed in Washington state, alleges that Valve's loot boxes "satisfy every element" of the state's definition of illegal gambling. The complaint argues that Valve has deliberately engineered its loot box and Steam marketplace systems to extract more money from consumers, including children, through the use of casino-like psychological techniques.

Why it matters

This lawsuit is the latest in a series of legal challenges Valve has faced over its loot box practices, which have been criticized for exploiting players, especially minors, and constituting a form of illegal gambling. The outcome of this case could have significant implications for the future of loot boxes and in-game monetization practices across the gaming industry.

The details

The class-action complaint claims that Valve's loot boxes "constitute illegal gambling under Washington law," citing the state's definition of gambling as "staking or risking something of value upon the outcome of a contest of chance or a future contingent event not under the person's control or influence." The complaint argues that Valve's loot box system, combined with the ability to sell virtual items for Steam Wallet funds, meets this definition. It also alleges that Valve has deliberately designed the loot box system to mimic the psychological techniques used in casino games, such as unpredictable reward schedules, visual and audio effects, and "near miss" animations.

  • On February 25, 2026, Valve was sued by the state of New York over its loot box practices.
  • The new class-action lawsuit was filed in Washington state in March 2026, shortly after the New York lawsuit.

The players

Valve

The company behind the popular digital game distribution platform Steam, which is at the center of the lawsuit over its loot box system.

Steve Berman

The founder and managing partner at the law firm Hagens Berman, which is representing the plaintiffs in the class-action lawsuit against Valve.

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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 makes this case particularly egregious is that Valve knew children were on the other end of these transactions. Rather than protect young players through age verification or a parental consent mechanism, we believe they rigged the game to extract more money from them.”

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

What’s next

The judge in the case will decide on whether to grant class-action status to the lawsuit, which could significantly expand the potential impact and damages if Valve is found liable.

The takeaway

This lawsuit highlights the ongoing debate over the legality and ethics of loot box systems in the gaming industry, particularly when it comes to protecting vulnerable players, such as children, from predatory monetization practices. The outcome of this case could set an important precedent for how loot boxes are regulated in the future.