Valve responds to NY Attorney General lawsuit over loot boxes

Game company says it has "serious concerns" with changes demanded by the NYAG office.

Published on Mar. 11, 2026

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Valve has responded to a lawsuit filed by the New York Attorney General's office over loot boxes in its popular games Counter-Strike 2, Dota 2, and Team Fortress 2. The company stated it does not believe the loot boxes violate New York gambling laws and was "disappointed" the NYAG filed the lawsuit after Valve tried to "educate" the office about virtual items since early 2023. Valve outlined its concerns with the NYAG's proposed changes, including restricting the transferability of digital items and requiring more invasive user data collection.

Why it matters

The lawsuit highlights the ongoing debate around loot boxes and whether they constitute illegal gambling, especially when it comes to games played by minors. Valve's response underscores the game industry's resistance to regulatory changes that could impact core game mechanics and monetization models.

The details

The NYAG lawsuit claims Valve has "made billions of dollars luring its users, many of whom are teenagers or younger, to engage in gambling" through loot boxes in its games. Valve disputes this, saying mystery boxes and their contents are similar to physical products like baseball cards that allow trading and reselling. The company says it has taken steps to shut down third-party gambling sites and protect users from fraud. However, Valve objects to the NYAG's proposed changes, including restricting item transferability and requiring more invasive user data collection.

  • Valve says it has been working to "educate" the NYAG office about virtual items since early 2023.
  • The NYAG lawsuit was filed on February 26, 2026.

The players

Valve

A video game company that owns and operates the Steam digital distribution platform. Valve is the developer of popular game franchises like Counter-Strike, Dota, and Team Fortress.

Letitia James

The New York Attorney General who filed the lawsuit against Valve over loot boxes in the company's games.

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What they’re saying

“We have serious concerns with many of the alterations the NYAG claims are necessary to make to our games.”

— Valve (gamesindustry.biz)

“Transferability is a right we believe should not be taken away, and we refuse to do that.”

— Valve (gamesindustry.biz)

What’s next

A court will ultimately decide whether Valve's position or the NYAG's position is correct regarding the legality of loot boxes in Valve's games.

The takeaway

This case highlights the ongoing tension between game companies and regulators over the use of loot boxes and other monetization mechanics, especially when it comes to protecting minors from potential gambling-like activities.