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New York Sues Valve for Gambling, Forgetting Half the Parents Already Lost to Loot Boxes

KEY POINTS

  • •New York Attorney General Letitia James filed a lawsuit in 2026 against Valve for promoting illegal gambling in video games.
  • •The suit targets the loot box systems in games like Counter-Strike 2, Team Fortress 2, and Dota 2 for charging players to win valuable prizes based on luck.
  • •James seeks to halt these gambling features permanently, recover all gains Valve earned, and impose fines for violating state law.

On the brave legal front as of early 2026, New York Attorney General Letitia James has boldly slapped Valve with a lawsuit accusing them of 'illegally promoting gambling' via their loot box systems in crowd-favorite games Counter-Strike 2, Team Fortress 2, and Dota 2. Her lawsuit insists that paying for a random chance at virtual goodies 'is quintessential gambling,' apparently ignoring the millions who paid for smartphones or a coffee formatted as an RNG experience. Valve is now threatened with a permanent stop on these lucrative 'chance-based purchases,' the disgorging of 'ill-gotten gains'—which we imagine includes many a digital hat—and some hefty fines under New York’s law, as the state attempts to keep gaming 'kid-friendly' even while marketing loot boxes with the allure of Las Vegas.

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Source: Theverge | Published: 2/25/2026 | Author: Jay Peters