Valve Vows to Fight New York's Loot Box Lawsuit

Company says mystery boxes are 'widely used' across games and rejects AG's proposed changes.

Published on Mar. 11, 2026

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Valve has vowed to fight a lawsuit filed by the New York Attorney General's office that accuses the company of promoting 'illegal gambling' through its in-game loot boxes. Valve argues that mystery boxes are common across the gaming industry and that the transferability of digital items is a 'right' it won't take away from users, despite the AG's proposed changes.

Why it matters

The lawsuit highlights the ongoing debate around loot boxes and whether they constitute illegal gambling, especially when targeting games popular with younger audiences. Valve's stance could set a precedent for how other game companies respond to similar legal challenges.

The details

In an email to players in New York, Valve said it is 'disappointed' in the lawsuit's claims, arguing that mystery boxes are 'widely used' across other games and also exist in the physical world with items like baseball cards and Pokémon cards. Valve claims it has worked with the AG's office since 2023 to explain how its virtual items and mystery boxes work, and that players 'don't have to open mystery boxes to play Valve games.' However, the AG's office says Valve has 'made billions of dollars luring its users, many of whom are teenagers or younger, to engage in gambling in the hopes of winning expensive virtual items.'

  • Valve says it has worked with the AGs since 2023 to explain its virtual items and mystery boxes.
  • The New York Attorney General filed the lawsuit against Valve last month.

The players

Valve

A major video game company and the creator of popular games like Counter-Strike, Dota 2, and Team Fortress 2, which feature in-game loot boxes.

Letitia James

The New York Attorney General who filed the lawsuit against Valve, accusing the company of promoting 'illegal gambling' through its in-game loot boxes.

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What they’re saying

“We think the transferability of a digital game item is good for consumers—it gives a user the ability to sell or trade an old or unwanted item for something else, in the same way an owner can sell or trade a tangible item like a Pokemon or baseball card. Transferability is a right we believe should not be taken away, and we refuse to do that.”

— Valve

“Valve has made billions of dollars luring its users, many of whom are teenagers or younger, to engage in gambling in the hopes of winning expensive virtual items that they can cash in on.”

— Letitia James, New York Attorney General

What’s next

Valve plans to fight the lawsuit's claims in court, but says it would comply if New York's legislature passes regulations related to loot boxes.

The takeaway

This case highlights the ongoing debate around the legality of loot boxes and the gaming industry's resistance to restrictions, even as regulators seek to protect consumers, especially younger players, from potential gambling-like mechanics.