New York sues Valve over alleged illegal gambling

The lawsuit, announced on February 25, 2026, claims that Valve enables gambling in games including Counter-Strike 2, Team Fortress 2, and Dota 2. According to the Office of the Attorney General, the company charges users for the chance to win rare virtual items through paid virtual containers known as loot boxes.

In Counter-Strike 2, the process is described as resembling a slot machine, with an animated spinning wheel that lands on a randomly selected item. The items, such as character hats or weapon skins, have no impact on gameplay but can be resold online. Some of the rarest items have reportedly sold for thousands of dollars, with one skin fetching more than $1 million in June 2024.

The complaint alleges that Valve has earned billions of dollars by encouraging users, many of them teenagers or younger, to spend money for a chance to obtain valuable virtual items that can later be exchanged for money. The value of Counter-Strike skins has surged in recent years, and in March 2025 the market for them was reported to have exceeded $4.3 billion.

Users can sell items through Valve’s Steam Community Market and use the proceeds to buy games or hardware. They can also link their accounts to third party marketplaces where items may be sold directly for cash. The attorney general’s office alleges that Valve facilitates and assists these external platforms.

The lawsuit also highlights security concerns, stating that hundreds of thousands of users have reported hacked accounts or being tricked into transferring valuable items.

James said illegal gambling can lead to serious addiction problems, particularly among young people. Research cited in the lawsuit indicates that children introduced to gambling are four times more likely to develop gambling problems later in life. The complaint further argues that the games’ focus on weapons and violence contributes to broader concerns about the impact of such content on young users.

Earlier, Qazinform News Agency reported that over 10 hours gaming weekly harms young people's diet and sleep.