New York Attorney General Letitia James has launched a major lawsuit against Valve Corporation, the developer behind smash-hit titles such as Counter-Strike 2, Team Fortress 2, and Dota 2. Filed on February 25, 2026, in a New York state court, the legal action asserts that Valve's implementation of 'loot boxes' constitutes illegal gambling, particularly targeting children and teenagers.

According to the Office of the Attorney General (OAG), an investigation revealed that Valve's games entice players to spend money for the chance to win rare virtual items through slot machine-like mechanics. These cosmetic items, despite having no in-game functionality, can hold significant real-world monetary value, with one AK-47 Counter-Strike skin reportedly selling for over $1 million. Attorney General James stated, “Valve has made billions of dollars by letting children and adults alike illegally gamble for the chance to win valuable virtual prizes. These features are addictive, harmful, and illegal, and my office is suing to stop Valve's illegal conduct and protect New Yorkers.”

The lawsuit claims Valve has profited immensely from these practices, with the market for Counter-Strike skins alone reportedly exceeding $4.3 billion by March 2025. The Attorney General seeks to permanently halt Valve's alleged promotion of illegal gambling, compel the company to disgorge all ill-gotten gains, and impose significant fines for violating New York's laws. This legal challenge is part of a broader effort by Attorney General James to curb illegal gambling and protect young people online.