The loot box debate in the U.S. just took a serious turn. On February 25, 2026, New York Attorney General Letitia James filed a lawsuit against Valve, claiming that loot boxes in Counter-Strike 2, Team Fortress 2, and Dota 2 violate the state’s gambling laws.
According to the filing, Valve’s system works like a slot machine. Players pay to open virtual containers for a randomized chance at rare cosmetic items. Some of these skins have reportedly sold for thousands of dollars with one item said to have exceeded $1 million in value.
The Attorney General’s office argues that Valve has made billions from these mechanics and that the items can be resold, either through the Steam Community Market for store credit or via third-party marketplaces for real cash. This, the lawsuit claims, effectively turns loot boxes into gambling.
The case also highlights concerns about minors, stating that young players may be especially vulnerable to randomized reward systems tied to real-world value.
James is seeking to permanently stop Valve from offering these features in New York, along with financial penalties and disgorgement of profits. Valve has not yet responded publicly.
If the court sides with New York, this could become one of the most significant U.S. legal challenges to loot boxes so far and potentially impact monetization models across the wider gaming industry.
Could this finally push U.S. regulators to define loot boxes as gambling, or will it end as another industry-shaking lawsuit that changes little? Share your thoughts and stay tuned to VGNW for more updates, and follow us on X for the latest developments.
